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Congestible services and network effects

Published: 07 June 2010 Publication History

Abstract

We study a system where many identical users of a service share a common resource. Each user is sensitive to congestion at the resource, but also experiences a positive network effect. We consider a model where both effects depend on the usage of individuals in the system, as well as potentially the number of users in the system. We consider two benchmark scales for the service: the subscriber base most preferred by an individual user (the "user-preferred" club size), and the subscriber base most preferred by the service manager (the "manager-preferred" club size). We find that the user-preferred size is always smaller than that chosen by a service manager; however, somewhat surprisingly, usage in the user-preferred club size is always efficient. Next, we carry out an asymptotic analysis in the regime where the network effect is increased without bound. We find that in this regime, the asymptotic behavior of the user-preferred club can be quite different from that formed by a service manager: for example, the user-preferred club size may remain finite, even if the club formed by a service manager has infinitely many members

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  • (2024)Service Guarantee Decision of Online Service Providers and Market ImplicationsManagerial and Decision Economics10.1002/mde.444146:2(1405-1419)Online publication date: 11-Dec-2024
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    cover image ACM Conferences
    EC '10: Proceedings of the 11th ACM conference on Electronic commerce
    June 2010
    400 pages
    ISBN:9781605588223
    DOI:10.1145/1807342

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    Association for Computing Machinery

    New York, NY, United States

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    Published: 07 June 2010

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    EC '10
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    EC '10: ACM Conference on Electronic Commerce
    June 7 - 11, 2010
    Massachusetts, Cambridge, USA

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    Overall Acceptance Rate 664 of 2,389 submissions, 28%

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    • (2024)Service Guarantee Decision of Online Service Providers and Market ImplicationsManagerial and Decision Economics10.1002/mde.444146:2(1405-1419)Online publication date: 11-Dec-2024
    • (2021)Cyclical behavior of evolutionary dynamics in coordination games with changing payoffsInternational Journal of Game Theory10.1007/s00182-021-00783-zOnline publication date: 14-Jun-2021
    • (2020)Investment in EV Charging Spots for ParkingIEEE Transactions on Network Science and Engineering10.1109/TNSE.2019.29225947:2(650-661)Online publication date: 1-Apr-2020
    • (2020)A Game-Theoretic Analysis for Complementary and Substitutable IoT Services Delivery With ExternalitiesIEEE Transactions on Communications10.1109/TCOMM.2019.294750968:1(615-629)Online publication date: Jan-2020
    • (2018)Price and Capacity Competition for EV parking with Government Mandates2018 56th Annual Allerton Conference on Communication, Control, and Computing (Allerton)10.1109/ALLERTON.2018.8635835(583-589)Online publication date: Oct-2018
    • (2018)Provisioning of ad-supported cloud services: The role of competitionPerformance Evaluation10.1016/j.peva.2018.01.001120(36-48)Online publication date: Apr-2018
    • (2018)Network EffectsEncyclopedia of Wireless Networks10.1007/978-3-319-32903-1_34-1(1-7)Online publication date: 7-Jun-2018
    • (2017)Mechanism and Network Design with Private Negative ExternalitiesOperations Research10.1287/opre.2016.158565:3(577-594)Online publication date: Jun-2017
    • (2017)Pricing and Capacity Allocation for Shared ServicesManufacturing & Service Operations Management10.1287/msom.2016.060619:2(230-245)Online publication date: May-2017
    • (2017)The Superposition-Traffic GameACM SIGMETRICS Performance Evaluation Review10.1145/3040230.304023644:3(22-25)Online publication date: 12-Jan-2017
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