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Effects of pricing on Internet user behavior

Author

Listed:
  • Jörn Altmann

    (University of California at Berkeley)

  • Björn Rupp

    (Humboldt University Berlin)

  • Pravin Varaiya

    (University of California at Berkeley)

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.

Suggested Citation

  • Jörn Altmann & Björn Rupp & Pravin Varaiya, 2001. "Effects of pricing on Internet user behavior," Netnomics, Springer, vol. 3(1), pages 67-84, June.
    • Handle: RePEc:kap:netnom:v:3:y:2001:i:1:d:10.1023_a:1009944726255
    DOI: 10.1023/A:1009944726255
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    Citations

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    Cited by:

    1. Constantin Mang, 2016. "Market Consequences of ICT Innovations," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 70.
    2. Link, Heike, 2015. "Is car drivers’ response to congestion charging schemes based on the correct perception of price signals?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 71(C), pages 96-109.
    3. Baseem Al-athwari & Jorn Altmann, 2015. "Utility-Based Smartphone Energy Consumption Optimization for Cloud-Based and On-Device Application Uses," TEMEP Discussion Papers 2015125, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Nov 2015.

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