Pricing Strategies for User-Provided Connectivity Services

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Departmental Papers (ESE)
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pricing
connectivity
user-centric
networks
adoption
Management Sciences and Quantitative Methods
OS and Networks
Systems and Communications
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Afrasiabi, M. H.
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User-provided connectivity (UPC) services offer a possible alternative, orcomplement, to existing infrastructure-based connectivity. A userallows other users to occasionally connect through its "home base" inexchange for reciprocation, or possibly compensation. This service modelexhibits strong positive and negative externalities. A large user basemakes the service more attractive, as it offers more connectivity options toroaming users, but it also implies a greater volume of (roaming) trafficpassing through a user's home base, which can increase congestion. Theseinteractions make it difficult to predict the eventual success of such aservice offering, and in particular how to effectively price it. This paperinvestigates a two-price policy where the first price is an introductory price that expires onceservice adoption reaches a certain level. The paper uses a simplifiedanalytical model to investigate pricing strategies under this policy, and their sensitivity to changesin system parameters. The insight and practicalguidelines this yields are validated numerically under morerealistic conditions.

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2012-01-14
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Departmental Papers (ESE)
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2023-05-17T06:46:24.000
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Afrasiabi, M. H. and Guérin, R. A. "Pricing Strategies for User-Provided Connectivity Services." IEEE INFOCOM 2012 Mini-Conference. Orlando, FL. March 2012. © 2012 IEEE. Personal use of this material is permitted. Permission from IEEE must be obtained for all other uses, in any current or future media, including reprinting/republishing this material for advertising or promotional purposes, creating new collective works, for resale or redistribution to servers or lists, or reuse of any copyrighted component of this work in other works
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