Pricing Congestible Resources

IEEE Journal of Selected Areas in Communications, Vol. 13, No. 7, pp. 1141-49, September 1995

Posted: 20 Apr 2007

See all articles by Jeffrey K. MacKie-Mason

Jeffrey K. MacKie-Mason

UC Berkeley; University of Michigan

Hal R. Varian

School of Information; University of California, Berkeley - Operations and Information Technology Management Group; National Bureau of Economic Research (NBER)

Abstract

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

MacKie-Mason, Jeffrey K. and Varian, Hal R., Pricing Congestible Resources. IEEE Journal of Selected Areas in Communications, Vol. 13, No. 7, pp. 1141-49, September 1995, Available at SSRN: https://ssrn.com/abstract=980790

Jeffrey K. MacKie-Mason (Contact Author)

UC Berkeley ( email )

102 South Hall
Berkeley, CA 94720-4600
United States

HOME PAGE: http://jeff-mason.com

University of Michigan ( email )

Ann Arbor, MI 48109-1092
United States

HOME PAGE: http://http:/jeff-mason.com/

Hal R. Varian

School of Information ( email )

UC Berkeley
Berkeley, CA 94720-4600
United States
510-642-9980 (Phone)
510-642-5814 (Fax)

HOME PAGE: http://www.sims.berkeley.edu/~hal/people/hal/biography.html

University of California, Berkeley - Operations and Information Technology Management Group ( email )

545 Student Services Building
Berkeley, CA 94720
United States
510-643-6388 (Phone)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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