Numerical Solution of Internet Pricing Scheme Based on Perfect Substitute Utility Function

In this paper we will analyze the internet pricing schemes based on Perfect Substitute utility function for homogeneous and heterogeneous consumers. The pricing schemes is useful to help internet service providers (ISP) in maximizing profits and provide better service quality for the users. The models on every type of consumer is applied to the data traffic in Palembang server in order to obtain the maximum profit to obtain optimal. The models are in the form of nonlinear optimization models and can be solved numerically using LINGO 11.0 to get the optimal solution. The results show that the case when we apply flat fee, USAge-based and two part tariff scheme for homogenous we reach the same profit and heterogeneous on willingness to pay we got higher profit if we apply USAge based and two part tariff schemes. Meanwhile, for the case when we apply USAge based and two part tariff schemes for heterogeneous on demand, we reach better solution than other scheme

Internet Pricing on Bandwidth Function Diminished With Increasing Bandwidth Utility Function

In this paper we analyze the internet pricing schemes based on bandwidth function diminished with increasing bandwidth utility function with 3 pricing strategies for homogeneous and heterogeneous consumer. The new proposed pricing schemes with this utility function will give the information to the internet service providers (ISP) in maximizing profits and provide better service quality for users. The Models on every type of consumer are applied to the data traffic in Palembang local server. LINGO 11.0 is used to compute the nonlinear programming problem to get the optimal solution. The results showed that for each case based on 3-pricing scheme, ISPs get better profit by choosing all three schemes in consumers type of homogenous case while for heterogeneous cases on willingness to pay and based on demand of the consumers, ISPs can select flat fee scheme to gain higher profit rather than those two other schemes

Numerical Solution of Internet Pricing Scheme Based on Perfect Substitute Utility Function

In this paper we will analyze the internet pricing schemes based on Perfect Substitute utility function for homogeneous and heterogeneous consumers. The pricing schemes is useful to help internet service providers (ISP) in maximizing profits and provide better service quality for the users. The models on every type of consumer is applied to the data traffic in Palembang server in order to obtain the maximum profit to obtain optimal. The models are in the form of nonlinear optimization models and can be solved numerically using LINGO 11.0 to get the optimal solution. The results show that the case when we apply flat fee, usage-based and two part tariff scheme for homogenous we reach the same profit and heterogeneous on willingness to pay we got higher profit if we apply usage based and two part tariff schemes. Meanwhile, for the case when we apply usage based and two part tariff schemes for heterogeneous on demand, we reach better solution than other scheme

Optimization of Wireless Internet Pricing Scheme in Serving Multi QoS Network Using Various Attributes

Pricing scheme in wireless networks were developed to provide maximum benefit to the internet service provider (ISP), where the given scheme can guarantee customer satisfaction and service providers who use such services. So that the proposed model should be able to attract consumer interest in applying such services. In this research we established wireless pricing model that involve QoS attributes then the model will be transformed into a model of optimization. Pricing models in wireless networks will be studied by looking at existing models as a nonlinear programming problem that can be solved optimally using LINGO 11.0. The solution is to maximize the total price for the connection based on the QoS parameters. Optimal results in the maximizing of pricing scheme is achieved when providers set the increase of price changes due to QoS changes and number of QoS value

Mixed integer nonlinear programming (MINLP)-based bandwidth utility function on internet pricing scheme with monitoring and marginal cost

The development of the internet in this era of globalization has increased fast. The need for internet becomes unlimited. Utility functions as one of measurements in internet usage, were usually associated with a level of satisfaction of users for the use of information services used. There are three internet pricing schemes used, that are flat fee, usage based and two-part tariff schemes by using one of the utility function which is Bandwidth Diminished with Increasing Bandwidth with monitoring cost and marginal cost. Internet pricing scheme will be solved by LINGO 13.0 in form of non-linear optimization problems to get optimal solution. The optimal solution is obtained using the either usage-based pricing scheme model or two-part tariff pricing scheme model for each services offered, if the comparison is with flat-fee pricing scheme. It is the best way for provider to offer network based on usage based scheme. The results show that by applying two part tariff scheme, the providers can maximize its revenue either for homogeneous or heterogeneous consumers

Utility Function-based Pricing Strategies in Maximizing the Information Service Provider’s Revenue with Marginal and Monitoring Costs

Previous research only focus on maximizing revenue for pricing strategies for information good with regardless the marginal and monitoring costs. This paper aims to focus on the addition of marginal and monitoring costs into the pricing strategies to maintain the maximal revenue while introduce the costs incurred in adopting the strategies. The well-known utility functions applied to also consider the consumer’s satisfaction towards the service offered. The results show that the addition costs incurred for setting up the strategies can also increase the profit for the providers rather than neglecting the costs. It is also showed that the Cobb-Douglas utility functions used can enhance the notion of provider to optimize the revenue compared to quasi linear and perfect substitutes

Cobb-Douglass Utility Function in Optimizing the Internet Pricing Scheme Model

The greater numbers of internet users the greater challenge will be tackled by ISP to provide good services but gain maximum profit. By analyzing Cobb-Douglass utility function we will obtain optimal pricing scheme. Wu and Banker analyzed modified Cobb-douglass utility function and obtained optimal model of flat fee and two part tariff for homogen consumers meanwhile we focus on getting optimal pricing scheme model by using original Cobb-Douglass utility function. The first step to conduct this research is by formulating Cobb-Douglass utility function then analyzing that function. The results show that we obtain optimal pricing scheme model for homogenous and heterogeneous consumer cases. The two-part tariff pricing scheme yield better optimal solution rather than flat fee and two-part tariff pricing scheme regarding with homogen consumers and heterogen consumers based on willingness to pay. For heterogeneous consumers based on consumption level, the optimal pricing scheme is on two-part tariff pricing scheme

How Software Startups Survive: a Model based on Resource-based View and Dynamic Capabilities

Rapid advances of IT have encouraged many software startups to enter the market place. Our research seeks to investigate the little-studied phenomenon of startup survival. The research is based on the resource-based view and on dynamic capabilities. We present a research model that investigates factors affecting software startup survival by examining how startups survive in their competitive environment. First, we categorize the resources of software startups into three areas based on socio-technical theory. Specifically, we view entrepreneurial resources as influencing both IT innovation and environmental resources. Second, we view dynamic capabilities as mediating the relationship between interactions among resources and software startup survival. Finally, we investigate the effect of competitive actions in moderating the relationship between dynamic capabilities and software startup survival. Our research seeks to contribute to extant research by proposing the first empirical study of which we are aware that addresses factors influencing software startup survival