Internet Pricing on Bandwidth Function Diminished With Increasing Bandwidth Utility Function
Abstract: In this paper we
analyze the internet pricing schemes based on bandwidth function diminished with
increasing bandwidth utility function with 3 pricing strategies for homogeneous
and heterogeneous consumer. The new proposed pricing schemes with this utility
function will give the information to the internet service providers (ISP) in
maximizing profits and provide better service quality for users. The Models on
every type of consumer are applied to the data traffic in Palembang local
server. LINGO 11.0 is used to compute the nonlinear programming problem to get
the optimal solution. The results showed that for each case based on 3-pricing
scheme, ISPs get better profit by choosing all three schemes in consumers type
of homogenous case while for heterogeneous cases on willingness to pay and
based on demand of the consumers, ISPs can select flat fee scheme to gain
higher profit rather than those two other schemes.
Keywords: utility functions, the function of diminished bandwidth
with increasing bandwidth, pricing schemes, consumer homogeneous, heterogeneous
consumers
Journal Code: jptkomputergg150017
