Free-Access Policy for Internal Networks

P. S. Giridharan and Haim Mendelson
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P. S. Giridharan: Graduate School of Industrial Administration, Carnegie Mellon University, Pittsburgh, Pennsylvania 15213
Haim Mendelson: Graduate School of Business, Stanford University, Stanford, California 94305-5015

Information Systems Research, 1994, vol. 5, issue 1, 1-22

Abstract: This paper evaluates the free-access policy as a control mechanism for internal networks. We derive the optimal message pricing scheme, compare it to the free-access policy, and study the associated net-value loss. We derive uniform upper bounds on this value loss, and apply our results to the polar implementations of ethernet and token ring networks. The results show that the free-access policy is often attractive.

Keywords: pricing; computer networks; free-access (search for similar items in EconPapers)
Date: 1994
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