[e2e] Re: economic models for access bandwidth

[Xin Wang]

On Thu, 19 Apr 2001, RJ Atkinson wrote:

> At 11:14 19/04/01, Xin Wang wrote:
> 
> >Charge does not necessarily mean high pay. For an elastic user, 
> >it is just an incentive for him to adjust the transmission rate. 
> >On  the other hand, for an inelastic user, a higher
> >fixed monthly charge can still work. Different people may have different preference.
> 
>         That economic approach is very challenging to engineer.
> If inelastic users were the only ones with a fixed monthly
> charge, the fixed charge would very probably be much much 
> higher than it is right now (as someone else, I think Vernon, 
> already observed, current pricing is based in part on users
> buying a bit more capacity than they might strictly require
> and on users taking strict best-effort service).

Then probably every user chooses to be inelastic.
I don't see why I should increase my delay or loss, or use
lower quality just because I could tolerate or I am able to
adapt.
 
> Ran
> 
> 
> 
>