• Title/Summary/Keyword: differentiated pricing

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A Study on Reliability Differentiated Pricing of Firm Capacity

  • Kim, Balho H.
    • Journal of Electrical Engineering and Technology
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    • v.8 no.1
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    • pp.40-45
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    • 2013
  • It is known that Reliability Differentiated Pricing (RDP) can improve the efficiency and benefits of consumers and producers. This paper examines the long-run social welfare maximization problem of the utility and presents a long-term reliability differentiated prices for firm capacity, based on customer outage costs. Then the applicability of the proposed pricing scheme is verified with a case study.

A Study on Reliability Differentiated Pricing of Long-Term Transactions

  • Kim, Bal-Ho H.
    • Journal of Electrical Engineering and Technology
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    • v.6 no.1
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    • pp.8-13
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    • 2011
  • Reliability differentiated pricing (RDP) is known to improve the efficiency and benefits of consumers and producers. Outage costs representing the economic and non-economic consequences of service curtailments to customers can be used as an effective parameter of RDP in electricity markets. This paper examines the theoretical aspects of an RDP scheme, and derives the optimal decisions of consumers and electric utilities for long-term transactions. The proposed RDP is demonstrated through a case study on a wheeling service.

A Study on Optimal Planning Strategy Based on Customer Outage Costs

  • Kim, Bal-Ho H.
    • Journal of Electrical Engineering and Technology
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    • v.5 no.1
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    • pp.21-27
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    • 2010
  • This paper examines the long-run social welfare maximization problems facing public utilities, which includes consideration of the cost of capital or other fixed costs of production, from which it derives optimal investment decisions in a reliability differentiated pricing based market. Reliability differentiated pricing policies lead to straightforward mathematical results on optimal investment decisions in generation and transmission expansion planning. This paper presents the mathematical conditions for optimal investment decisions.

An Idea, Strategy of Congestion Pricing for Differentiated Services and Forecasting Probability of Access using Logistic Regression Model (차등서비스를 위한 혼잡요금부과의 타당성 검토와 로지스틱 회귀모형을 이용한 인터넷 접속 확률 예측)

  • Ji Seonsu
    • Journal of Korea Society of Industrial Information Systems
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    • v.10 no.1
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    • pp.9-15
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    • 2005
  • Congestion control is an important research area in computer network. In this paper, I provided strategy of congestion pricing with differentiated services. And, suggested forecasting model of access that considered differentiated pricing, delay time, satisfaction using logistic regression. In a forecasting model of access with logistic regression technique, it is shown that coefficient of determination using suggested model is $70.7\%$.

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Reliability Differentiated Transmission Pricing (계통 신뢰도를 고려한 송전요율산정 방안)

  • Lee, Won-Goo;Kim, Bal-Ho;Kim, Jung-Hoon
    • Proceedings of the KIEE Conference
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    • 1999.07c
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    • pp.1256-1258
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    • 1999
  • Electric industry has been the object of major reforms in many countries. These reforms are aimed at attaining efficiency through competition. Thus network companies do not charge transmission cost for line user the same as method at past. This paper presents a transmission cost allocation through reliability differentiated transmission pricing in competitive electric industry. The proposed method considers only the line capacity affecting the reliability of transmission pricing under normal state and contingency state.

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Segment-based Differentiated Pricing Strategy for Reducing Congestion of Expressways (고속도로 혼잡 완화를 위한 구간별 차등요금 부과전략)

  • Lee, Eunho;Kim, Dong-Kyu;Kho, Seung-Young;Kim, Hyo Seung
    • Journal of Korean Society of Transportation
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    • v.32 no.6
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    • pp.675-685
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    • 2014
  • This paper develops a differentiated pricing strategy over each segment of expressways based on the second-best pricing method for reducing congestion. To this end, a bi-level problem is proposed, in which the upper level of the model is formulated to determine toll level of each segment for minimizing traffic congestion, whereas the lower level of the model is formulated as a variable demand assignment problem. The sensitivity analysis based algorithm is took placed to find optimal solutions of upper level model. An application of the proposed model uses the modified Sioux-Falls network. The results show that the segment-based differentiated pricing strategy performs better than the existing uniform pricing strategy in reducing traffic congestion. This study can be applied as a demand management method to relieve disutility of excessively congested segments of expressways.

Congestion Pricing Function of Internet Differentiated Services for Social Benefit (사회적 편익을 위한 인터넷 차등서비스의 혼잡요금함수)

  • Ji Seon-Su
    • Journal of Korea Society of Industrial Information Systems
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    • v.11 no.2
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    • pp.9-17
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    • 2006
  • Over the last couple of years, established Cumulus Pricing Scheme(CPS) has become an important research issue for efficiently charging differentiated internet services. This paper proposes the adjusted CPS technique that expressed information of over or under-use of resources in bandwidth. And, 1 propose CPS with respect to the six main pricing and charging conditions. Also, accumulation technique may indicate an information between specified charging and eventually requires to adapt the initial contract. So called red and green Cumulus Points(CP) are used to judge the behavior of customer. At this point, the actual resource consumption is described by function v(t) at time t.

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Congestion Control and Differentiated Services based Pricing (요금부과를 기반으로 구별되는 서비스와 혼잡관리)

  • 지선수
    • Journal of Korea Society of Industrial Information Systems
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    • v.8 no.4
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    • pp.17-25
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    • 2003
  • In the current bandwidth mechanism, ISPs provide guaranteed internet bandwidth within itself domains. Also transmission of data through the network can cause congestion. An inevitable consequence is partly responsible for the difficulties to ISPs and customers. In economic views, multiple demands for a scarce resource are mediated through a bandwidth market. Using the auction-based admission algorithm In price congestion, I propose a different pricing scheme for statistically guaranteed QoS.

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Optimal Packet Price for Differentiated Internet Services

  • Lee, Hoon
    • The Journal of Korean Institute of Communications and Information Sciences
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    • v.34 no.11B
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    • pp.1191-1199
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    • 2009
  • As the Internet service evolves from the best effort data service to a multimedia service such as a mix of voice, data and video, a need for the guarantee of the quality of service to network services became one of the hot issues for the network operators. On the other hand, the introduction of the multimedia services over the IP network requires a managed differentiated service that adopts a prioritized treatment of packets. This incurs a need for a differentiated pricing scheme for the packets that receive different level of quality of service. This work proposes an analytic framework about packet pricing scheme for these services, and investigate the effect of service differentiation to the packet price for each class. Via numerical experiment, we validate our argument and illustrate the implication of the work.

An Optimal Incentive-Compatible Pricing for Congestible Networks (혼잡이 있는 네트워크를 위한 동기 유발 가격)

  • Kim, Yong-Jae
    • Asia pacific journal of information systems
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    • v.7 no.3
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    • pp.109-124
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    • 1997
  • Pricing information services, where congestion can threaten the efficient operation of information systems, has been studied in economics and information systems literature, Recent explosion of the Internet ana proliferation of multimedia content over the Internet have rekindled the research interest in designing pricing schedules for differentiated information services, In order for the information system to effectively serve users having heterogeneous needs, pricing rules for discriminated services should be considered. At the same time, when individual users' interest does not align with that of the organization that individual users belong to, organization-wide pricing policy should be devised to improve the value of the services rendered by the system. This paper, using a priority queuing model, addresses the need for such on incentive-compatible pricing for different information services.

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