On the optimality of fixed-up-to tariff for telecommunications service

Yasushi Masuda, Seungjin Whang

研究成果: Article査読

35 被引用数 (Scopus)

抄録

A tariff is the total charge payable by a customer for services provided. We study the design of tariffs for a telecommunications service provider. We develop an economic model that captures the negative externalities of the network and the diversity of customers. The tariff is designed so that it reflects the expected response of different customers and the system congestion it would induce. We study a simple tariff structure in wide use by mobile phone carriers - a menu of "fixed-up-to (FUT)" plans like "fixed access fee $35 up to 300 minutes, and $0.40 per minute beyond the limit." We derive the optimal menu of FUT plans and show that such a simple FUT menu structure delivers as good performance to the monopolistic carrier as any nonlinear pricing schedule.

本文言語English
ページ(範囲)247-253
ページ数7
ジャーナルInformation Systems Research
17
3
DOI
出版ステータスPublished - 2006 1 1

ASJC Scopus subject areas

  • 管理情報システム
  • 情報システム
  • コンピュータ ネットワークおよび通信
  • 情報システムおよび情報管理
  • 図書館情報学

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