A token pricing scheme for internet services

Dongmyung Lee; Jeonghoon Mo; Jean Walrand; Jinwoo Park

doi:10.1007/978-3-642-24547-3_4

A token pricing scheme for internet services

Dongmyung Lee, Jeonghoon Mo, Jean Walrand, Jinwoo Park

Department of Industrial Engineering

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution

5 Citations (Scopus)

Abstract

Flat-rate pricing has been the dominant scheme for tariffing Internet services due to its popularity and simplicity. However, this scheme does not provide incentives for users to use network resources efficiently. As the demand for wireless video and other resource-intensive services grows faster than the providers' ability to expand the network capacity, this inefficiency becomes critical. This situation has led numerous researchers and practitioners to explore new pricing schemes. In this spirit, we introduce a pricing scheme called Token Pricing that is both practical and efficient. As in flat-rate pricing, the users face a fixed price. However, users consume tokens when they want a higher quality of service while the network is congested. This mechanism encourages users to congest the network only when they have a high utility for the service. As a result, users make a better use of the resources and the social welfare increases.

Original language	English
Title of host publication	Economics of Converged, Internet-Based Networks - 7th International Workshop on Internet Charging and QoS Technologies, ICQT 2011, Proceedings
Pages	26-37
Number of pages	12
DOIs	https://doi.org/10.1007/978-3-642-24547-3_4
Publication status	Published - 2011
Event	7th International Workshop on Internet Charging and QoS Technology, ICQT 2011, Collocated with the 7th International Conference on Network and Service Management, CNSM 2011 - Paris, France Duration: 2011 Oct 24 → 2011 Oct 24

Publication series

Name	Lecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics)
Volume	6995 LNCS
ISSN (Print)	0302-9743
ISSN (Electronic)	1611-3349

Other

Other	7th International Workshop on Internet Charging and QoS Technology, ICQT 2011, Collocated with the 7th International Conference on Network and Service Management, CNSM 2011
Country/Territory	France
City	Paris
Period	11/10/24 → 11/10/24

Bibliographical note

Funding Information:
This research was supported in part by the MKE under the ITRC program (NIPA-2011-(C1090-1111-0005)) and in part by NRF (2011-0002663).

All Science Journal Classification (ASJC) codes

Theoretical Computer Science
Computer Science(all)

Access to Document

10.1007/978-3-642-24547-3_4

Cite this

Lee, D., Mo, J., Walrand, J., & Park, J. (2011). A token pricing scheme for internet services. In Economics of Converged, Internet-Based Networks - 7th International Workshop on Internet Charging and QoS Technologies, ICQT 2011, Proceedings (pp. 26-37). (Lecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics); Vol. 6995 LNCS). https://doi.org/10.1007/978-3-642-24547-3_4

Lee, Dongmyung ; Mo, Jeonghoon ; Walrand, Jean et al. / A token pricing scheme for internet services. Economics of Converged, Internet-Based Networks - 7th International Workshop on Internet Charging and QoS Technologies, ICQT 2011, Proceedings. 2011. pp. 26-37 (Lecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics)).

@inproceedings{bdb8ac9ad9ea4d8e8d6b261c7a9fcecf,

title = "A token pricing scheme for internet services",

abstract = "Flat-rate pricing has been the dominant scheme for tariffing Internet services due to its popularity and simplicity. However, this scheme does not provide incentives for users to use network resources efficiently. As the demand for wireless video and other resource-intensive services grows faster than the providers' ability to expand the network capacity, this inefficiency becomes critical. This situation has led numerous researchers and practitioners to explore new pricing schemes. In this spirit, we introduce a pricing scheme called Token Pricing that is both practical and efficient. As in flat-rate pricing, the users face a fixed price. However, users consume tokens when they want a higher quality of service while the network is congested. This mechanism encourages users to congest the network only when they have a high utility for the service. As a result, users make a better use of the resources and the social welfare increases.",

author = "Dongmyung Lee and Jeonghoon Mo and Jean Walrand and Jinwoo Park",

note = "Funding Information: This research was supported in part by the MKE under the ITRC program (NIPA-2011-(C1090-1111-0005)) and in part by NRF (2011-0002663).; 7th International Workshop on Internet Charging and QoS Technology, ICQT 2011, Collocated with the 7th International Conference on Network and Service Management, CNSM 2011 ; Conference date: 24-10-2011 Through 24-10-2011",

year = "2011",

doi = "10.1007/978-3-642-24547-3_4",

language = "English",

isbn = "9783642245466",

series = "Lecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics)",

pages = "26--37",

booktitle = "Economics of Converged, Internet-Based Networks - 7th International Workshop on Internet Charging and QoS Technologies, ICQT 2011, Proceedings",

}

Lee, D, Mo, J, Walrand, J & Park, J 2011, A token pricing scheme for internet services. in Economics of Converged, Internet-Based Networks - 7th International Workshop on Internet Charging and QoS Technologies, ICQT 2011, Proceedings. Lecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics), vol. 6995 LNCS, pp. 26-37, 7th International Workshop on Internet Charging and QoS Technology, ICQT 2011, Collocated with the 7th International Conference on Network and Service Management, CNSM 2011, Paris, France, 11/10/24. https://doi.org/10.1007/978-3-642-24547-3_4

A token pricing scheme for internet services. / Lee, Dongmyung; Mo, Jeonghoon; Walrand, Jean et al.

Economics of Converged, Internet-Based Networks - 7th International Workshop on Internet Charging and QoS Technologies, ICQT 2011, Proceedings. 2011. p. 26-37 (Lecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics); Vol. 6995 LNCS).

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution

TY - GEN

T1 - A token pricing scheme for internet services

AU - Lee, Dongmyung

AU - Mo, Jeonghoon

AU - Walrand, Jean

AU - Park, Jinwoo

N1 - Funding Information: This research was supported in part by the MKE under the ITRC program (NIPA-2011-(C1090-1111-0005)) and in part by NRF (2011-0002663).

PY - 2011

Y1 - 2011

N2 - Flat-rate pricing has been the dominant scheme for tariffing Internet services due to its popularity and simplicity. However, this scheme does not provide incentives for users to use network resources efficiently. As the demand for wireless video and other resource-intensive services grows faster than the providers' ability to expand the network capacity, this inefficiency becomes critical. This situation has led numerous researchers and practitioners to explore new pricing schemes. In this spirit, we introduce a pricing scheme called Token Pricing that is both practical and efficient. As in flat-rate pricing, the users face a fixed price. However, users consume tokens when they want a higher quality of service while the network is congested. This mechanism encourages users to congest the network only when they have a high utility for the service. As a result, users make a better use of the resources and the social welfare increases.

AB - Flat-rate pricing has been the dominant scheme for tariffing Internet services due to its popularity and simplicity. However, this scheme does not provide incentives for users to use network resources efficiently. As the demand for wireless video and other resource-intensive services grows faster than the providers' ability to expand the network capacity, this inefficiency becomes critical. This situation has led numerous researchers and practitioners to explore new pricing schemes. In this spirit, we introduce a pricing scheme called Token Pricing that is both practical and efficient. As in flat-rate pricing, the users face a fixed price. However, users consume tokens when they want a higher quality of service while the network is congested. This mechanism encourages users to congest the network only when they have a high utility for the service. As a result, users make a better use of the resources and the social welfare increases.

UR - http://www.scopus.com/inward/record.url?scp=80054833449&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=80054833449&partnerID=8YFLogxK

U2 - 10.1007/978-3-642-24547-3_4

DO - 10.1007/978-3-642-24547-3_4

M3 - Conference contribution

AN - SCOPUS:80054833449

SN - 9783642245466

T3 - Lecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics)

SP - 26

EP - 37

BT - Economics of Converged, Internet-Based Networks - 7th International Workshop on Internet Charging and QoS Technologies, ICQT 2011, Proceedings

T2 - 7th International Workshop on Internet Charging and QoS Technology, ICQT 2011, Collocated with the 7th International Conference on Network and Service Management, CNSM 2011

Y2 - 24 October 2011 through 24 October 2011

ER -

Lee D, Mo J, Walrand J, Park J. A token pricing scheme for internet services. In Economics of Converged, Internet-Based Networks - 7th International Workshop on Internet Charging and QoS Technologies, ICQT 2011, Proceedings. 2011. p. 26-37. (Lecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics)). doi: 10.1007/978-3-642-24547-3_4

A token pricing scheme for internet services

Abstract

Publication series

Other

Bibliographical note

All Science Journal Classification (ASJC) codes

Access to Document

Other files and links

Fingerprint

Cite this