[e2e] Re: economic models for access bandwidth

RJ Atkinson rja at inet.org
Thu Apr 19 08:35:24 PDT 2001

At 11:14 19/04/01, Xin Wang wrote:

>Charge does not necessarily mean high pay. For an elastic user, 
>it is just an incentive for him to adjust the transmission rate. 
>On  the other hand, for an inelastic user, a higher
>fixed monthly charge can still work. Different people may have different preference.

        That economic approach is very challenging to engineer.
If inelastic users were the only ones with a fixed monthly
charge, the fixed charge would very probably be much much 
higher than it is right now (as someone else, I think Vernon, 
already observed, current pricing is based in part on users
buying a bit more capacity than they might strictly require
and on users taking strict best-effort service).


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