Internet pricing vs. reality

1997 ◽  
Vol 40 (8) ◽  
pp. 118-121 ◽  
Author(s):  
A. Michael Noll
Keyword(s):  
2017 ◽  
Vol 21 (2) ◽  
pp. 270-273 ◽  
Author(s):  
Lijia Xie ◽  
Yao Zhang ◽  
Zhiming Zheng ◽  
Xiao Zhang

Author(s):  
Nael Hussein ◽  
Kamaruzzaman Seman ◽  
Fitri Maya Puspita ◽  
Khairi Abdul Rahim ◽  
Mus'ab Sahrim

Author(s):  
Robinson Sitepu ◽  
Fitri Maya Puspita ◽  
Elika Kurniadi ◽  
Yunita Yunita ◽  
Shintya Apriliyani

<span>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.</span>


Author(s):  
Jihui Chen

In the pre-Internet era, consumers relied on media such as Sunday newspapers and flyers for product and price information. Such a search process is time-consuming and unlikely to be exhaustive. Existence of incomplete information has been shown to lead to price dispersion (Stigler, 1961). Recent advances in information technology have dramatically changed the manner by which consumers and businesses gather and transmit information. With a few mouse-clicks, consumers are able to compare price information from a wide range of vendors. With the advent of the Internet, especially the introduction of price comparison sites or shopbots, competition among online retailers escalates and we might expect prices to converge in the new economy. However, substantially decreased transaction cost has apparently not led to online price convergence. An extensive literature on Internet pricing has documented persistent price dispersion in online markets. In this chapter, I review price dispersion and related literatures, and discuss future research directions.


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