Consumer benefit versus price elasticity of demand: a nonlinear complex system model of pricing internet services on QoS-centric architecture

摘要

Based on complex system considerations, a technoeconomic model to depict the extent of consumer reaction (in terms of consumer surplus, V) to changes in Internet pricing is developed. Relevant research pursuit tracks analytically, the nonlinear evolution of the functional relation in question with various stochastic (and/or deterministic) technoeconomic parameters that interactively decide the underlying complexity. Hence, an explicit function is derived to relate the fractional change in V and the price elasticity of demand (E) specific to differentially classifiable services on Quality of Service (QoS) (DiffServ)-centric Internet architecture. The model is applied to dynamic-, smart- and static-market pricing schemes. Results are discussed with respect to some model simulations.