scholarly journals Cobb-Douglass Utility Function in Optimizing the Internet Pricing Scheme Model

Author(s):  
Indrawati Indrawati ◽  
Irmeilyana Irmeilyana ◽  
Fitri Maya Puspita ◽  
Meiza Putri Lestari
Author(s):  
Indrawati Indrawati ◽  
Irmeilyana Irmeilyana ◽  
Fitri Maya Puspita ◽  
Meiza Putri Lestari

Author(s):  
Robinson Sitepu ◽  
Fitri Maya Puspita ◽  
Elika Kurniadi ◽  
Yunita Yunita ◽  
Shintya Apriliyani

<span>The development of the internet in this era of globalization has increased fast. The need for internet becomes unlimited. Utility functions as one of measurements in internet usage, were usually associated with a level of satisfaction of users for the use of information services used. There are three internet pricing schemes used, that are flat fee, usage based and two-part tariff schemes by using one of the utility function which is Bandwidth Diminished with Increasing Bandwidth with monitoring cost and marginal cost. Internet pricing scheme will be solved by LINGO 13.0 in form of non-linear optimization problems to get optimal solution. The optimal solution is obtained using the either usage-based pricing scheme model or two-part tariff pricing scheme model for each services offered, if the comparison is with flat-fee pricing scheme. It is the best way for provider to offer network based on usage based scheme. The results show that by applying two part tariff scheme, the providers can maximize its revenue either for homogeneous or heterogeneous consumers.</span>


Author(s):  
Indrawati Indrawati ◽  
Fitri Maya Puspita ◽  
Sri Erlita ◽  
Inosensius Nadeak

<p>The problem of internet pricing is a problem that is often a major problem in optimization. In this study, the internet pricing scheme focuses on optimizing the use of bandwidth consumption. This research utilizes modification of cloud model in finding optimal solution in network. Cloud computing is computational model which is like network, server, storage and service that is utilizing internet connection. As ISP's Internet service provider requires appropriate pricing schemes in order to maximize revenue and provide quality of service (Quality on Service) or QoS so as to satisfy internet users or users. The model used will be completed with the help of LINGO software program to get optimal solution and accurate result. Based on the optimal solution obtained from the modification of the cloud model can be utilized ISP to maximize revenue and provide services in accordance with needs and requests.</p>


Author(s):  
Jihui Chen

In the pre-Internet era, consumers relied on media such as Sunday newspapers and flyers for product and price information. Such a search process is time-consuming and unlikely to be exhaustive. Existence of incomplete information has been shown to lead to price dispersion (Stigler, 1961). Recent advances in information technology have dramatically changed the manner by which consumers and businesses gather and transmit information. With a few mouse-clicks, consumers are able to compare price information from a wide range of vendors. With the advent of the Internet, especially the introduction of price comparison sites or shopbots, competition among online retailers escalates and we might expect prices to converge in the new economy. However, substantially decreased transaction cost has apparently not led to online price convergence. An extensive literature on Internet pricing has documented persistent price dispersion in online markets. In this chapter, I review price dispersion and related literatures, and discuss future research directions.


First Monday ◽  
2006 ◽  
Author(s):  
Phillip G. Bradford ◽  
Herbert E. Brown ◽  
Paula M. Saunders

This paper is included in the First Monday Special Issue: Commercial Applications of the Internet, published in July 2006. The Internet has changed the way people buy things. A pointed difference is the use of Internet auctions and bots. But, are these differences actually changing the role and function of price in the firm's marketing program? Are they possibly changing options for pricing, and perhaps even, the very notion of perceived value? Or in fact, does the new set of Internet pricing mechanisms merely require marketers to do what good marketers have always done, and that is to build customer-perceived value and use price to recapture it? The only difference may be that now, we can do it even better because we have better tools.


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