Dynamic Bandwidth Pricing: Provision Cost, Market Size, Effective Bandwidths and Price Games

dc.creatorSoursos,Sergios
dc.creatorCourcoubetis,Costas
dc.creatorWeber,Richard
dc.date2008
dc.date.accessioned2024-02-06T12:56:20Z
dc.date.available2024-02-06T12:56:20Z
dc.descriptionNowadays, in the markets of broadband access services, traditional contracts are of "static" type. Customers buy the right to use a specific amount of resources for a specific period of time. On the other hand, modern services and applications render the demand for bandwidth highly variable and bursty. New types of contracts emerge ("dynamic contracts") which allow customers to dynamically adjust their bandwidth demand. In such an environment, we study the case of a price competition situation between two providers of static and dynamic contracts. We investigate the resulting reaction curves, search for the existence of an equilibrium point and examine if and how the market is segmented between the two providers. Our first model considers simple, constant provision costs. We then extend the model to include costs that depend on the multiplexing capabilities that the contracts offer to the providers, taking into consideration the size of the market. We base our analysis on the theory of effective bandwidths and investigate the new conditions that allow the provider of dynamic contracts to enter the market.
dc.formattext/html
dc.identifierhttps://doi.org/10.3217/jucs-014-05-0766
dc.identifierhttps://lib.jucs.org/article/29003/
dc.identifier.urihttps://openrepository.mephi.ru/handle/123456789/9651
dc.languageen
dc.publisherJournal of Universal Computer Science
dc.relationinfo:eu-repo/semantics/altIdentifier/eissn/0948-6968
dc.relationinfo:eu-repo/semantics/altIdentifier/pissn/0948-695X
dc.rightsinfo:eu-repo/semantics/openAccess
dc.rightsJ.UCS License
dc.sourceJUCS - Journal of Universal Computer Science 14(5): 766-785
dc.subjectnetwork economics
dc.subjectcontracts
dc.subjectpricing
dc.subjectbandwidth on demand
dc.subjecteffective bandwidths
dc.subjectstatistical multiplexing
dc.subjectreaction curves
dc.subjectcompetition
dc.subjectprovision cost
dc.titleDynamic Bandwidth Pricing: Provision Cost, Market Size, Effective Bandwidths and Price Games
dc.typeResearch Article
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