[e2e] Re: economic models for access bandwidth
xwang at ctr.columbia.edu
Thu Apr 19 08:53:09 PDT 2001
On Thu, 19 Apr 2001, RJ Atkinson wrote:
> 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).
Then probably every user chooses to be inelastic.
I don't see why I should increase my delay or loss, or use
lower quality just because I could tolerate or I am able to
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