41,661 research outputs found
Pricing strategies under heterogeneous service requirements
This paper analyzes a communication network, used by customers with heterogeneous service requirements. We investigate priority queueing as a way to establish service differentiation. It is assumed that there is an infinite population of customers, who join the network as long as their utility (which is a function of the queueing delay) is larger than the price of the service. We focus on the specific situation with two types of users: one type is delay-sensitive (`voice'), whereas the other is delay-tolerant (`data'); these preferences are reflected in their utility curves. Two models are considered: in the first the network determines the priority class of the users, whereas the second model leaves this choice to the users. For both models we determine the prices that maximize the provider's profit. Importantly, these situations do not coincide. Our analysis uses elements from queueing theory, but also from microeconomics and game theory (e.g., the concept of a Nash equilibrium). We conclude the paper by considering a model in which throughput (rather than delay) is the main performance measure. Again the pricing strategy exploits the heterogeneity in service requirements and willingness-to-pay
Fairs for e-commerce: the benefits of aggregating buyers and sellers
In recent years, many new and interesting models of successful online
business have been developed. Many of these are based on the competition
between users, such as online auctions, where the product price is not fixed
and tends to rise. Other models, including group-buying, are based on
cooperation between users, characterized by a dynamic price of the product that
tends to go down. There is not yet a business model in which both sellers and
buyers are grouped in order to negotiate on a specific product or service. The
present study investigates a new extension of the group-buying model, called
fair, which allows aggregation of demand and supply for price optimization, in
a cooperative manner. Additionally, our system also aggregates products and
destinations for shipping optimization. We introduced the following new
relevant input parameters in order to implement a double-side aggregation: (a)
price-quantity curves provided by the seller; (b) waiting time, that is, the
longer buyers wait, the greater discount they get; (c) payment time, which
determines if the buyer pays before, during or after receiving the product; (d)
the distance between the place where products are available and the place of
shipment, provided in advance by the buyer or dynamically suggested by the
system. To analyze the proposed model we implemented a system prototype and a
simulator that allow to study effects of changing some input parameters. We
analyzed the dynamic price model in fairs having one single seller and a
combination of selected sellers. The results are very encouraging and motivate
further investigation on this topic
A Game Theoretic Analysis of Incentives in Content Production and Sharing over Peer-to-Peer Networks
User-generated content can be distributed at a low cost using peer-to-peer
(P2P) networks, but the free-rider problem hinders the utilization of P2P
networks. In order to achieve an efficient use of P2P networks, we investigate
fundamental issues on incentives in content production and sharing using game
theory. We build a basic model to analyze non-cooperative outcomes without an
incentive scheme and then use different game formulations derived from the
basic model to examine five incentive schemes: cooperative, payment, repeated
interaction, intervention, and enforced full sharing. The results of this paper
show that 1) cooperative peers share all produced content while non-cooperative
peers do not share at all without an incentive scheme; 2) a cooperative scheme
allows peers to consume more content than non-cooperative outcomes do; 3) a
cooperative outcome can be achieved among non-cooperative peers by introducing
an incentive scheme based on payment, repeated interaction, or intervention;
and 4) enforced full sharing has ambiguous welfare effects on peers. In
addition to describing the solutions of different formulations, we discuss
enforcement and informational requirements to implement each solution, aiming
to offer a guideline for protocol designers when designing incentive schemes
for P2P networks.Comment: 31 pages, 3 figures, 1 tabl
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