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Pricing information services in a competitive market: avoiding price wars

Abstract : In [2], it is shown that pricing of e-services may more often than not lead to ruinous price wars. We show that this undesirable result need not occur, and does not follow in most cases when the model underlying the Nash game is sufficiently general. By adding a Quality of Service (QoS) term to the payoff function of each provider, we analyze resulting price equilibria for a number of different hypotheses on user behavior. Further, we consider both single-tier and two-tier pricing, as practiced currently by a major web hosting service provider.
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Submitted on : Tuesday, May 23, 2006 - 7:13:01 PM
Last modification on : Friday, February 4, 2022 - 3:08:14 AM
Long-term archiving on: : Sunday, April 4, 2010 - 10:43:50 PM


  • HAL Id : inria-00071906, version 1



Zhen Liu, Laura Wynter, Cathy Xia. Pricing information services in a competitive market: avoiding price wars. [Research Report] RR-4679, INRIA. 2002. ⟨inria-00071906⟩



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