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Utility and Pricing for the Best Effort Internet Services  

Lee, Hoon (Dept.of Information Communication Engineering, Changwon National University)
Uh, Yoon (Dept.of Information Communication Engineering, Changwon National University)
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Abstract
In this paper the authors explore the effect of bandwidth sharing to the utility of the customer for the best-effort Internet services and draw a basis for the pricing principle in Internet Protocol networks. Especially, we investigate the behavior of a customer's utility in case an arbitrary amount of additional bandwidth is allowed to each customer for the elastic traffic, which is the typical example of the non-real time Internet data traffic. After drawing the utility curve, which will be proved to follow the concave curve, we will apply it to the pricing of Internet traffic. Finally, via numerical experiments, we will illustrate the validity and implication of the proposed method.
Keywords
IP network; Best effort services; Utility; Pricing;
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