Pricing Congestible Resources
IEEE Journal of Selected Areas in Communications, Vol. 13, No. 7, pp. 1141-49, September 1995
Posted: 20 Apr 2007
We describe the basic economic theory of pricing a congestible resource such as an ftp server, a router, a Web site, etc. In particular, we examine the implications of "congestion pricing" as a way to encourage efficient use of network resources. We explore the implications of flat pricing and congestion pricing for capacity expansion in centrally planned, competitive, and monopolistic environments.
Suggested Citation: Suggested Citation