Publication Type

Conference Proceeding Article

Version

publishedVersion

Publication Date

6-2007

Abstract

Design of e-commerce services that are competitive, in such a quickly responding market, requires the analyses of prices and price structures. We present 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 both 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

E-commerce, web hosting, content distribution, quality of service (QOS), Nash equilibrium, value of time

Discipline

E-Commerce | Numerical Analysis and Scientific Computing

Research Areas

Intelligent Systems and Optimization

Areas of Excellence

Digital transformation

Publication

Proceedings of the 2003 IEEE International Conference on E-Commerce Technology (CEC'03), Newport Beach, California, June 24-27

First Page

355

Last Page

362

ISBN

9780769519692

Identifier

10.1109/COEC.2003.1210271

Publisher

IEEE Computer Society

City or Country

Los Alamitos, CA

Additional URL

https://doi.org/10.1109/COEC.2003.1210271

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