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A pricing scheme to maximize social welfare in communication networks

  • J. Estévez*
  • , H. G. Xiong
  • , Q. Gao
  • , E. Guerrero
  • *Corresponding author for this work
  • Beihang University

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

In this paper, we analyze switching from the current flat-rate Internet pricing to adopt usage-based pricing schemes. Even if flat rate pricing is one of the main reasons for the success of the Internet, the only way to prevent network congestion, differentiate services and maximizes social welfare is to adopt usage-based pricing schemes. Our scheme is highly related to an optimal congestion and cost-sharing pricing scheme for multiclass services applied to communication networks developed by Yezekael Hayel, Bruno Tuffin and design a pricing scheme that maximizes the social welfare which is the total gross value minus the total expected delay cost.

Original languageEnglish
Title of host publicationInternational Conference on Space Information Technology 2009
DOIs
StatePublished - 2010
EventInternational Conference on Space Information Technology 2009 - Beijing, China
Duration: 26 Nov 200927 Nov 2009

Publication series

NameProceedings of SPIE - The International Society for Optical Engineering
Volume7651
ISSN (Print)0277-786X

Conference

ConferenceInternational Conference on Space Information Technology 2009
Country/TerritoryChina
CityBeijing
Period26/11/0927/11/09

Keywords

  • Bandwidth allocation
  • pricing mechanism
  • social welfare

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