Abstract
In this paper, we consider revenues of the NSP (network service provider) when there exists a "congestion externality." In particular, we compare revenues obtained using a flat price and two-part tariff and analyze the effect of congestion on the revenue loss when using a simple entry fee in lieu of the two-part tariff. Previous study has shown that when there is no delay disutility the revenue loss is small, which leads to a low "Price of Simplicity." However, in this study, we show that in an extreme case where all users are identical, the price of simplicity is substantial. Then we consider a more practical scenario where users have different preferences, and show that even in this case, under congestion externality, the price can be extremely high.
| Original language | English |
|---|---|
| Article number | 6354274 |
| Pages (from-to) | 2158-2168 |
| Number of pages | 11 |
| Journal | IEEE Journal on Selected Areas in Communications |
| Volume | 30 |
| Issue number | 11 |
| DOIs | |
| Publication status | Published - 2012 |
Bibliographical note
Funding Information:Manuscript received 15 December 2011; revised 31 May 2012. This research was supported by the National Research Foundation of Korea (NRF) grant funded by the Korea government (MEST) (No. 2012R1A1A2007890), and ASRI, SNU. D. Lee and J. Park are with the Department of Industrial Engineering, Seoul National University, South Korea (e-mail: {leoleo333,autofact}@snu.ac.kr). J. Mo is with the Department of Information and Industrial Engineering, Yonsei University, South Korea (e-mail: j.mo@yonsei.ac.kr). Corresponding author. G. Jin is with Highbrow Inc., Korea (e-mail: kimgwang@yonsei.ac.kr). Digital Object Identifier 10.1109/JSAC.2012.121208.
All Science Journal Classification (ASJC) codes
- Computer Networks and Communications
- Electrical and Electronic Engineering