Publication Type

Conference Proceeding Article

Version

publishedVersion

Publication Date

11-2003

Abstract

Design of e-commerce services that are competitive in a quickly responding market requires the analyses of prices and price structures. We develop a general model of an e-commerce market that allows us to analyze optimal price structures, both flat and usage-based. Based on the price structure of a major web hosting provider, we consider single-tier and two-tier (burst-rate) pricing, and our result suggests that the more complex two-tier structure may not be worth the marketing effort, as the firm's equilibrium profits will not increase through the use of this structure. An essential feature of our approach is that we model explicitly the spread of price-QoS tradeoffs across the end-user population.

Keywords

Content distribution, E-commerce, Nash equilibrium, Quality of service (QOS), Value of time

Discipline

E-Commerce | Numerical Analysis and Scientific Computing

Research Areas

Intelligent Systems and Optimization

Areas of Excellence

Digital transformation

Publication

EC '03: Proceedings of the 4th ACM conference on Electronic commerce, Diego, USA, 2003 June 9-12

First Page

188

Last Page

189

ISBN

9781581136791

Identifier

10.1145/779928.77995

Publisher

ACM

City or Country

New York

Additional URL

https://doi.org/10.1145/779928.77995

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