Effects of pricing on Internet user behavior

Jörn Altmann, Björn Rupp () and Pravin Varaiya ()
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Björn Rupp: Humboldt University Berlin
Pravin Varaiya: University of California at Berkeley

Netnomics, 2001, vol. 3, issue 1, 67-84

Abstract: Abstract The INternet Demand EXperiment (INDEX) conducts experiments to measure demand for quality-differentiated Internet access as a function of bandwidth, traffic volume, applications, and pricing structure. This paper presents an overview of results based on aggregated data from five pricing experiments. In these experiments, pricing is based either on time, volume, a combination of both, or a flat-rate buy out option. Quality of Service (QoS) is differentiated by varying bandwidth for incoming and outgoing traffic. After describing the experimental design and characterizing our subject pool using demographic data, we examine the change in service usage by comparing the five experiments in terms of traffic generation, QoS selection, and expenditure.

Keywords: demand for quality-differentiated Internet access; experimental studies; pricing of network services (search for similar items in EconPapers)
Date: 2001
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DOI: 10.1023/A:1009944726255

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