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by Address Hal, R. Varian, Department Of Economics, Jeffrey K. Mackie-mason, Jeffrey K. Mackie-mason, Jeffrey K. Mackie-mason, Hal R. Varian, Hal R. Varian
IEEE Journal on Selected Areas in Communications
ftp://sunsite.unc.edu/pub/academic/economics/internet-economics/pricing-congestible.ps.Z
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Abstract:
Abstract. We describe the basic economic theory of pricing a congestible resource such as an ftp server, a router, a Web site, etc. In particular, we examine the implications of "congestion pricing" as a way to encourage efficient use of network resources. We explore the implications of flat pricing and congestion pricing for capacity expansion in centrally planned, competitive, and monopolistic environments.
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