Internet pricing: a two sided market perspective Online publication date: Sat, 18-Apr-2015
by Swadesh Kumar Samanta, Hui Pan, John Woods, Mohammed Ghanbari
International Journal of Economics and Business Research (IJEBR), Vol. 3, No. 2, 2011
Abstract: We adopt a two-sided market model to represent the interaction of internet service providers (ISP), internet users and content providers to study the optimal pricing strategy for the ISP. We allow the ISP to vary all four components of the price, that is, subscription and usage price to the internet user, and subscription and usage price to the content provider. We offer a potential business advantage to the ISP describing how the total charges can be allocated between the internet user and the content provider and how the price charged to one side can be allocated between the subscription and usage parts. Under a realistic assumption, we show that a profit maximising ISP would prefer to provide access subsidy to both the internet user and the content provider and derive profit from the usage volume.
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Economics and Business Research (IJEBR):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email subs@inderscience.com