extended-abstract

Capacity planning, quality of service and price wars

Authors:

Parijat Dube,

Corinne Touati,

Laura WynterAuthors Info & Claims

ACM SIGMETRICS Performance Evaluation Review, Volume 35, Issue 3

Pages 31 - 33

https://doi.org/10.1145/1328690.1328702

Published: 01 December 2007 Publication History

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Abstract

We model the relationship between capacity, Quality of Service (QoS) and offered prices of service providers in a competitive e-services market. Capacity and QoS are linked through simple queueing formulae while QoS and price are coupled through distributions on customer preferences. We study the sensitivity of market share of providers to price, capacity and market size. We revisit the notion of "price wars" that has been shown to lead to zero profits for all providers and conclude that our more general model does admit some form of anomalous behavior, but which need not lead to zero profits.

References

[1]

P. C. Fishburn and A. M. Odlyzko. Competitive pricing of information goods: Subscription pricing versus pay-per-use. Economic Theory, 13:447--470, 1999.

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[2]

Z. Liu, L. Wynter, and C. Xia. Usage-based versus Flat Pricing for E-business Services with Differentiated QoS. in proc. of IEEE Conference on Electronic Commerce CEC '03, June 2003.

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Dube PJain R(2014)Bertrand equilibria and efficiency in markets for congestible network servicesAutomatica (Journal of IFAC)10.1016/j.automatica.2013.12.02050:3(756-767)Online publication date: 1-Mar-2014
https://dl.acm.org/doi/10.1016/j.automatica.2013.12.020
Dube PJain R(2010)DiffServ pricing games in multi-class queueing network models2010 22nd International Teletraffic Congress (lTC 22)10.1109/ITC.2010.5608737(1-8)Online publication date: Sep-2010
https://doi.org/10.1109/ITC.2010.5608737
Chunhua Tian Feng Li Rongzeng Cao Wei Ding (2008)Service capacity allocation and pricingNOMS 2008 - 2008 IEEE Network Operations and Management Symposium10.1109/NOMS.2008.4575187(678-681)Online publication date: Apr-2008
https://doi.org/10.1109/NOMS.2008.4575187

Index Terms

Capacity planning, quality of service and price wars
1. Social and professional topics
  1. Professional topics
    1. Management of computing and information systems

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cover image ACM SIGMETRICS Performance Evaluation Review

ACM SIGMETRICS Performance Evaluation Review Volume 35, Issue 3

December 2007

73 pages

ISSN:0163-5999

DOI:10.1145/1328690

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Association for Computing Machinery

New York, NY, United States

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Published: 01 December 2007

Published in SIGMETRICS Volume 35, Issue 3

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Dube PJain R(2014)Bertrand equilibria and efficiency in markets for congestible network servicesAutomatica (Journal of IFAC)10.1016/j.automatica.2013.12.02050:3(756-767)Online publication date: 1-Mar-2014
https://dl.acm.org/doi/10.1016/j.automatica.2013.12.020
Dube PJain R(2010)DiffServ pricing games in multi-class queueing network models2010 22nd International Teletraffic Congress (lTC 22)10.1109/ITC.2010.5608737(1-8)Online publication date: Sep-2010
https://doi.org/10.1109/ITC.2010.5608737
Chunhua Tian Feng Li Rongzeng Cao Wei Ding (2008)Service capacity allocation and pricingNOMS 2008 - 2008 IEEE Network Operations and Management Symposium10.1109/NOMS.2008.4575187(678-681)Online publication date: Apr-2008
https://doi.org/10.1109/NOMS.2008.4575187

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Uniform Price Auctions: Equilibria and Efficiency

Competitive Spatial Price Discrimination with Capacity Constraints

At What Quality and What Price?: Eliciting Buyer Preferences as a Market Design Problem

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