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Simple competitive internet pricing

Simple competitive internet pricing
Simple competitive internet pricing
It is widely recognised that pricing is required to control congestion on the Internet. One lesson that has emerged from many proposals is that any price system should be simple and robust to competition. This is highlighted in the question currently under debate in the market for Internet services: should usage prices should be employed at all? In a duopoly model with overall positive network effects, it is shown that flat rate pricing can occur in equilibrium, even when the costs of measuring variable demand are very small
internet pricing, network effects, non-linear pricing
0014-2921
1045-1056
Mason, Robin
c989f0e0-de54-495d-aeaf-75b42d62cb61
Mason, Robin
c989f0e0-de54-495d-aeaf-75b42d62cb61

Mason, Robin (2000) Simple competitive internet pricing. European Economic Review, 44 (4-6), 1045-1056. (doi:10.1016/S0014-2921(00)00042-8).

Record type: Article

Abstract

It is widely recognised that pricing is required to control congestion on the Internet. One lesson that has emerged from many proposals is that any price system should be simple and robust to competition. This is highlighted in the question currently under debate in the market for Internet services: should usage prices should be employed at all? In a duopoly model with overall positive network effects, it is shown that flat rate pricing can occur in equilibrium, even when the costs of measuring variable demand are very small

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More information

Published date: 2000
Additional Information: JEL classification codes: D43, L13, L96
Keywords: internet pricing, network effects, non-linear pricing

Identifiers

Local EPrints ID: 33001
URI: https://eprints.soton.ac.uk/id/eprint/33001
ISSN: 0014-2921
PURE UUID: b6a82be0-126e-4ec1-b239-7a634d545424

Catalogue record

Date deposited: 18 Jul 2006
Last modified: 27 Feb 2019 17:31

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