The Relationship Between Certainty of Bandwidth and Certainty of Price in Internet Services

Title: The Relationship Between Certainty of Bandwidth and Certainty of Price in Internet Services

Research Question: How does the demand for certainty of bandwidth in internet services affect the certainty of price?

Methodology: The researchers used a combination of economic theory, queuing models, and statistical analysis to examine the relationship between certainty of bandwidth and certainty of price in internet services. They focused on the implications of these relationships for policy makers.

Results: The study found that certainty of bandwidth and certainty of price are mutually exclusive in a statistically shared network. This means that as the demand for certainty of bandwidth increases, the certainty of price decreases, and vice versa. The researchers also found that premium priced products with guaranteed bandwidth will continue to find a market, and that marginal cost based pricing will not be feasible in a statistically shared network.

Implications: The findings of this study have significant implications for policy makers. They suggest that as more internet services require certainty of bandwidth, the certainty of price will decrease. This could potentially lead to increased costs for users and a decrease in the accessibility of these services. Furthermore, the study implies that when building virtual circuits or offering premium service in a statistically shared network, marginal cost based pricing will not be feasible.

In conclusion, the researchers highlight the importance of understanding the relationship between certainty of bandwidth and certainty of price in internet services. They suggest that policy makers should consider these relationships when making decisions about pricing and bandwidth allocation in the internet industry.

Link to Article: https://arxiv.org/abs/0110016v1 Authors: arXiv ID: 0110016v1