L. Anania and R. Solomon, "Flat--the minimalist price", pp. 91-118 in Internet Economics, L. W. McKnight and J. P. Bailey, eds., MIT Press, 1997. Preliminary version in J. Electronic, Publishing, special issue on Internet economics, www.press.umich.edu/jep/  Home/Search   Document Not in Database   Summary   Related Articles   Check

....dictates that accounting and pricing mechanisms must be primarily concentrated near the edge routers with minimal participation of interior routers. 2. Related pricing proposals Flat rate price, the most common mode of payment today for bandwidth services, is popular for several reasons [flat pricing]. First, flat rate pricing is efficient when the network is not congested, since most of the costs for network providers are sunk costs and unless there is congestion, the marginal cost of forwarding a packet is essentially zero [smart markets, expectedcapacity ] Second, flat fees are useful ....

Anania, L. A & Solomon, R. J (1997) Flat - The minimalist price, Internet Economics, Eds McKnight & Bailey, MIT press, 1997.

....multiple services to share the same telecommunications infrastructure easily. The importance of a multi service network was recognised by traditional telecommunications service providers, but their attempts at an Integrated Services Digital Network has so far met with little market success [Anania97]. Perhaps one reason is that the Internet al..so significantly eases service creation; Internet services are by their nature software defined and network technology independent, with services running between edge nodes of the network [Isenberg98] Traditional telecommunications service providers ....

....feedback scheme. Each packet must also be directly attributable to a particular account. The additional overheads have lead one critic to remark that the pricing solutions [are] getting more intricate than the networked interconnection itself , while extolling the virtues of flat rate pricing [Anania97]. However, the long term viability of flat rate pricing for Internet access has been questioned [Pioneer97] CNET98] while congestion based prices can generate revenue for capacity expansion [Mackie Mason95a] Priority pricing schemes (e.g. Gupta97] benefit from architectural support for a ....

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Loretta Anania and Richard Jay Solomon. Flat -- The Minimalist Price. In Lee W. McKnight and Joseph P. Bailey editors, Internet Economics, pages 91-118. The MIT Press, 1997. 131

....pay for a packet from site X to site Y that was generated by our request for something from site A, which then contacted site B, etc. We will be happy to pay extra for simple schemes that make our lives easy. Flat rate is by far the simplest pricing plan, and, as predicted by Anania and Solomon [AnaniaS], it continues to dominate the data transmission market. The historical information of this paper only strengthens the arguments of Anania and Solomon and of the papers [Odlyzko7, Odlyzko8] in favor of continuing with flat rates for data transmission over core fiber optic networks. However, there ....

L. Anania and R. J. Solomon, Flat--the minimalist price, pp. 91-118 in Internet Economics, L. W. McKnight and J. P. Bailey, eds., MIT Press, 1997. Preliminary version in J. Electronic Publishing, special issue on Internet economics, http://www.press.umich.edu/jep/
.

....control with pricing. 3.4 Internet Pricing Service for Multiple Serviced Networks There are mainly three kinds of pricing models for Internet, the flat rate pricing, the usage based pricing, and the congestion sensitive pricing. Flat rate pricing is the most commonly used model for payment today [5], 41] 55] A typical example of it is an annual fee for unlimited access, based on the bandwidth of the connection. Although this scheme is simple and efficient when the network is not congested, it provides no incentives for users to adjust their demands according to network state. Usage based ....

L. A. Anania and R. J. Solomon, Flat -- The Minimalist Price, In Mcknight and Bailey, Eds., Internet Economics, MIT Press, 1997.

....pay for a packet from site X to site Y that was generated by our request for something from site A, which then contacted site B, etc. We will be happy to pay extra for simple schemes that make our lives easy. Flat rate is by far the simplest pricing plan, and, as predicted by Anania and Solomon [AnaniaS], it continues to dominate the data transmission market. The historical information of this paper only strengthens the arguments of Anania and Solomon and of the papers [Odlyzko3, Odlyzko4] in favor of continuing with flat rates for data transmission over core fiber optic networks. However, there ....

L. Anania and R. J. Solomon, Flat--the minimalist price, pp. 91-118 in Internet Economics, L. W. McKnight and J. P. Bailey, eds., MIT Press, 1997. Preliminary version in J. Electronic Publishing, special issue on Internet economics, hhttp://www.press.umich.edu/jep/i.

....on the previous year s usage, with surcharges or refunds if consumption deviates by more than 20 from the expected level. Flat rates are preferred by consumers, but they also have major advantages for service providers. They were already advocated for broadband services by Anania and Solomon in [1], a paper that was first presented almost a decade ago. On the Internet, they eliminate the need for a traffic measurement and charging infrastructure, which, even for a system such as PMP, where almost all the work would be done at the edges of the network, would be costly to implement. Flat ....

....not on the network provider, which again seems to be more palatable. 6 OTHER PRICING PROPOSALS Many proposals have been made for usage sensitive pricing. Extensive information can be found on the Web site [31] and in the collection of paper edited by McKnight and Bailey (of which the reference [1] below is one) Further references, short summaries, and criticisms can be found in [8, 29, 30] There are also interesting new proposals, such as the elegant PFP (Proportional Fair Pricing) one of Gibbens and Kelly [17] PMP differs from all those proposals in not maximizing any simply ....

Anania, L. and Solomon, R. J. Flat--the minimalist price, pp. 91-118 in Internet Economics, L. W. McKnight and J. P. Bailey, eds., MIT Press, 1997. Preliminary version in J. Electronic Publishing, special issue on Internet economics, hhttp://www.press.umich.edu/jep/i.

.... in favor of simple fixed fee charging mechanisms come from customer preferences (even those of large corporate customers) which often lead to higher rev 2 enues for service providers who use such pricing approaches [FishburnOS] An early 1988 paper by Anania and Solomon (published in [AnaniaS]) already presented several arguments for a simple flat rate pricing approach to broadband networks. Although simple flat rate pricing with uniform best effort data transport is attractive, it has many defects. It provides a single level of service quality, and does not allow users to select what ....

L. Anania and R. J. Solomon, Flat--the minimalist price, pp. 91-118 in Internet Economics, L. W. McKnight and J. P. Bailey, eds., MIT Press, 1997. Preliminary version in J. Electronic Publishing, special issue on Internet economics, #http://www.press.umich.edu/jep/#.

....and pricing. Key words: Packet networks pricing usage sensitive pricing resource allocation online measurements 1 1 Introduction One of the most interesting debates in Internet economics is the issue of flat rate pricing versus usage sensitive pricing . Anania and Solomon [2] argue that flat rates, e.g. a usage insensitive access price, is preferable since users typically favor simplicity and predictability. Proponents of usage sensitive pricing [3, 13, 14] however, point out that charging users based on their effective resource utilization results in greater ....

L. Anania and R. Solomon. Flat---the minimalist price. In L. McKnight and J. Bailey, editors, Internet Economics. MIT Press, Cambridge, Massachusetts, 1997.

....on the previous year s usage, with surcharges or refunds if consumption deviates by more than 20 from the expected level. Flat rates are preferred by consumers, but they also have major advantages for service providers. They were already advocated for broadband services by Anania and Solomon in [AnaniaS], a paper that was first presented almost a decade ago. On the Internet, they eliminate the need for a traffic measurement and charging infrastructure, which, even for a system such as PMP, where almost all the work would be done at the edges of the network, would be costly to implement. Flat ....

....on the network provider, which again seems to be more palatable. 6. Other pricing proposals Many proposals have been made for usage sensitive pricing. Extensive information can be found on the Web site [Varian0] and in the collection of paper edited by McKnight and Bailey (of which the reference [AnaniaS] below is one) Further references, short summaries, and criticisms can be found in [Clark1, Shenker1, ShenkerCEH] There are also interesting new proposals, such as the one of Gibbens and Kelly [GibbensK] PMP differs from all those proposals in not maximizing any simply quantifiable objective ....

L. Anania and R. J. Solomon, Flat--the minimalist price, pp. 91-118 in Internet Economics, L. W. McKnight and J. P. Bailey, eds., MIT Press, 1997. Preliminary version in J. Electronic Publishing, special issue on Internet economics, hhttp://www.press.umich.edu/jep/i.

.... better than best effort performance. Hence, it is important that one focuses on congestion sensitive pricing instead of usagesensitive pricing. It is also known that most users prefer flat pricing and only a subset of users are interested in the option of paying more for better performance (Anania Solomon, 1997). This behavior has been observed in other contexts such as using tolled highways. For example, the Orange County highway 91 charges a toll based on the time of day and the relative congestion in the highway (IBD, 1998c) In other words, a larger toll will be charged if many cars are currently ....

Anania, L. A & Solomon, R. J (1997) Flat - The minimalist price, Internet Economics, Eds McKnight & Bailey, MIT press, 1997.

....excellent service for everybody through better use of aggregation of traffic and complementarity of usage patterns. The bulk of the work on QoS may be unnecessary. Anania and Solomon wrote a paper in 1988 (which was widely circulated and discussed at that time, but was only published recently in [AnaniaS]) that took the unorthodox approach of arguing for a flat rate approach to broadband pricing. That paper was about pricing of what are now called ATM services, which have QoS built in, but many of Anania and Solomon s arguments also imply the desirability of a simple undifferentiated service. My ....

L. Anania and R. J. Solomon, Flat--the minimalist price, pp. 91-118 in Internet Economics, L. W. McKnight and J. P. Bailey, eds., MIT Press, 1997. Preliminary version in J. Electronic Publishing, special issue on Internet economics, hhttp://www.press.umich.edu/jep/i.

.... Further factors in favor of simple fixed fee charging mechanisms come from customer preferences (even those of large corporate customers) which often lead to higher revenues for service providers who use such pricing approaches [FishburnOS] An early 1988 paper by Anania and Solomon (published in [AnaniaS]) already presented several arguments for a simple flat rate pricing approach to broadband networks. Although simple flat rate pricing with uniform best effort data transport is attractive, it has many defects. It provides a single level of service quality, and does not allow users to select what ....

L. Anania and R. J. Solomon, Flat--the minimalist price, pp. 91-118 in Internet Economics, L. W. McKnight and J. P. Bailey, eds., MIT Press, 1997. Preliminary version in J. Electronic Publishing, special issue on Internet economics, hhttp://www.press.umich.edu/jep/i.

....to count the packets and bytes for each user. Essentially all of this accounting could be done at the edges of the network. Flat rates are preferred by consumers, but they also have major advantages for service providers. They were already advocated for broadband services by Anania and Solomon in [1], a paper that was first presented almost a decade ago. On the Internet, they eliminate the need for a traffic measurement and charging infrastructure, which, even for a system such as PMP, where almost all the work would be done at the edges of the network, would be costly to implement. In PMP, ....

L. Anania and R. J. Solomon, Flat--the minimalist price, pp. 91-118 in Internet Economics, L. W. McKnight and J. P. Bailey, eds., MIT Press, 1997. Preliminary version in J. Electronic Publishing, special issue on Internet economics, hhttp://www.press.umich.edu/jep/i.

....in the United States had the effect of shortening the lengths of calls, even when the charges were on a per call basis. Flat rates are preferred by consumers, but they also have major advantages for service providers. They were already advocated for broadband services by Anania and Solomon in [AnaniaS], a paper that was first presented almost a decade ago. On the Internet, they eliminate the need for a traffic measurement and charging infrastructure, which, even for a system such as PMP, where almost all the work would be done at the edges of the network, would be costly to implement. Flat ....

....the network provider, which again seems to be more palatable. 6. Other pricing proposals Several proposals have been made for usage sensitive pricing. Extensive information can be found on the Web site [Varian0] and in the collection of paper edited by McKnight and Bailey (of which the reference [AnaniaS] below is one) Further references, short summaries, and criticisms can be found in [Clark1, Shenker1, ShenkerCEH] Here I only make a few remarks on the main features of some of these proposals, and how they compare to PMP. Among the earliest and most influential pricing proposals is that of ....

L. Anania and R. J. Solomon, Flat--the minimalist price, pp. 91-118 in Internet Economics, L. W. McKnight and J. P. Bailey, eds., MIT Press, 1997. Preliminary version in J. Electronic Publishing, special issue on Internet economics, hhttp://www.press.umich.edu/jep/i.

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L. Anania and R. Solomon, "Flat--the minimalist price", pp. 91-118 in Internet Economics, L. W. McKnight and J. P. Bailey, eds., MIT Press, 1997. Preliminary version in J. Electronic, Publishing, special issue on Internet economics, www.press.umich.edu/jep/

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L. Anania and R. J. Solomon, Flat--the minimalist price, pp. 91-118 in Internet Economics, L. W. McKnight and J. P. Bailey, eds., MIT Press, 1997. Preliminary version in J. Electronic Publishing, special issue on Internet economics, #http://www.press.umich.edu/jep/#.

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L. Anania and R. J. Solomon, Flat--the minimalist price, pp. 91-118 in Internet Economics, L. W. McKnight and J. P. Bailey, eds., MIT Press, 1997. Preliminary version in J. Electronic Publishing, special issue on Internet economics, hhttp://www.press.umich.edu/jep/i.

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L. Anania and R. Solomon, "Flat-the Minimalist Price," pp. 91--118 in Internet Economics, L. W. McKnight and J. P. Bailey, eds., MIT Press, 1997; preliminary version in J. Electronic Publishing, special issue on Internet economics, www.press. umich.edu/jep/

No context found.

ANANIA, L. AND SOLOMON, R. J. Flat--The Minimalist Price. Internet Economics, MIT Press, Cambridge, Massachusetts. 1997.

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L. Anania and R. J. Solomon, Flat--the minimalist price, pp. 91-118 in Internet Economics, L. W. McKnight and J. P. Bailey, eds., MIT Press, 1997. Preliminary version in J. Electronic Publishing, special issue on Internet economics, hhttp://www.press.umich.edu/jep/i.

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