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A progressive analysis of Internet market: from best effort to quality of service

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  • Shin, SeungJae
  • Weiss, M.B.H.Martin B. H.
  • Correa, Hector

Abstract

In this paper, the equilibrium outcomes of the Internet quality of service (QoS) game model are analyzed when two rural Internet Access Providers (IAPs) interact with several business and technical strategies such as technology, best effort (BE) or QoS, pricing scheme (flat-rate pricing or a two-part tariff), and investment in network capacity. Considering the IAPs with BE and flat-rate pricing as the current Internet, the equilibrium points in this model show a progressive path of market behavior toward the future Internet market. In conclusion, the IAPs with a strategy set of {QoS, flat-rate pricing, 2K network capacity} would be a plausible and socially desirable market situation in the future.

Suggested Citation

  • Shin, SeungJae & Weiss, M.B.H.Martin B. H. & Correa, Hector, 0. "A progressive analysis of Internet market: from best effort to quality of service," Telecommunications Policy, Elsevier, vol. 28(5-6), pages 363-389, June.
    • Handle: RePEc:eee:telpol:v:28:y::i:5-6:p:363-389
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    Citations

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    Cited by:

    1. christoph Engel, 2005. "Voice over IP. Competition Policy and Regulation," Discussion Paper Series of the Max Planck Institute for Research on Collective Goods 2005_26, Max Planck Institute for Research on Collective Goods.
    2. Takanori Ida & Shin Kinoshita & Masayuki Sato, 2008. "Conjoint analysis of demand for IP telephony: the case of Japan," Applied Economics, Taylor & Francis Journals, vol. 40(10), pages 1279-1287.

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