• Journal of the Institute of Electronics and Information Engineers
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• v.50 no.2
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• pp.11-19
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• 2013

Internet service providers regulate the maximum data transmission rate of each user as a means to provide a tiered Internet access service or to avoid the monopoly of a few greedy users. In this paper, we aim to analyze the impact of this access rate regulation on the revenue of Internet service provider and the pricing strategy. We first propose a service quality model taking into account the access rate regulation, and analyze how the regulation affects the service subscription decision of users. In addition, we derive a sufficient condition that guarantees the stability of the revenue, and formulate an optimization problem that finds the optimal price to maximize the revenue.

• Asia pacific journal of information systems
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• v.17 no.4
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• pp.113-132
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• 2007

Price rigidity involves prices that do not change with the regularity predicted by standard economic theory. It is of long-standing interest for firms, industries and the economy as a whole. However, due to the difficulty of measuring price rigidity and price adjustments directly, only a few studies have attempted to provide empirical evidence for explanatory theories from Economics and Marketing. This paper proposes and validates a research model to examine different theories of price rigidity and to predict what variables can explain the observed empirical regularities and variations in price adjustment patterns of Internet-based retailers. I specify and test a model using more than 3 million daily observations on 385 books, 118 DVDs and 154 CDs, sold by 22 Internet-based retailers that were collected over a 676-day period from March 2003 to February 2005. I obtained a number of interesting findings from the estimation of our logit model. First, quality seems to play a role-I find that both price levels as proxies for store quality, and information on the quality of a product consumers have, affect online price rigidity. Second, greater competition(i.e., less industry concentration) leads to less price rigidity(i.e., more price changes) on the Internet. I also find that Internet-based sellers more frequently change the prices of popular products, and the sellers with broader product coverage change prices less frequently, which seem due to economic forces faced by these Internet-based sellers. To the best of my knowledge, this research is the first to empirically assess price rigidity patterns for multiple industries in Internet-based retailing, and attempt to explain the variation in these patterns. I found that price changes are more likely to be driven by quality, competitive and economic considerations. These results speak to both the IS and economics literatures. To the IS literature these results suggest we take economic considerations into account in more sophisticated ways. The existence and variation in price rigidity argue that simplistic assumptions about frictionless and completely flexible digital prices do not capture the richness of pricing behavior on the Internet. The quality, competitive and economic forces identified in this model suggest promising directions for future theoretical and empirical work on their role in these technologically changing markets. To the economics literature these results offer new evidence on the sources of price rigidity, which can then be incorporated into the development of models of pricing at the firm, industry and even macro-economic level of analysis. It also suggests that there is much to be learned through interdisciplinary research between the IS, economics and related business disciplines.

• The Journal of Society for e-Business Studies
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• v.4 no.2
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• pp.41-58
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• 1999

This paper is a study on a model of economic value of transmission speed of Internet Commerce. For this research, this paper searches the factors that influence the transmission speed of Internet and suggests the model for measurement of economic value. The model adopted in this research is CVM(contingent valuation method) using in environment economics and the research area in this paper is concentrated on Internet-based Electronic Commerce. For this purpose, this paper suggests econometrics model that measures customer's payment intention for transmission speed of Internet. This model can be used as the basic tool of feasibility of investment analysis and reasonable pricing on Internet service. For the more, it will be followed empirical study and more careful comprehension for objective validity of this study.

• Proceedings of the CALSEC Conference
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• 2005.03a
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• pp.143-148
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• 2005

The purpose of this paper is to analyze pricing strategies between conventional offline retailers and Internet retailers and discuss which strategy is more profitable when a bricks-and-mortar firm transforms into a clicks-and-mortar firm.

• ETRI Journal
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• v.32 no.1
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• pp.169-171
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• 2010

Even though Internet phone service (IPS) continues to evolve in terms of quality and competitive pricing compared with the public switched telephone network (PSTN), the number of Internet phone subscribers is still low in South Korea. The Korean government decided to apply number portability to the IPS market in 2008. This study expresses its value in monetary terms with a contingent valuation approach. With this methodology, this study investigates the willingness of 316 current PSTN subscribers to pay for IPS, using a specific survey method called double-bounded dichotomous choices, to obtain more accurate data. The results show that the calculated value of Internet phone number portability positively impacts consumer welfare.

• 한국산학경영학회:학술대회논문집
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• 2004.11a
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• pp.4-22
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• 2004

The Internet provides a new distribution channel of digital contents for conventional media firms such as newspaper, magazine and encyclopedia publishers and broadcasting companies with very low marginal production and distribution cost. In comparison to traditional offline channel, there have been various revenue models in online content markets such as advertising model, subscription model, affiliation fee model, etc. In the earlier of the Internet era, most of online content firms provided their services free in order to boost offline revenue or they depend on advertising revenue sources in lieu of attaining revenue from their contents. However, as many online content firms are confronted with many difficulties in attaining revenues from online advertising model, they began to charge their contents. This paper shows why they charge their contents and explores entry conditions when conventional firms enter online content markets. And also this paper discusses managerial implications related to pricing strategies in online content markets.

• KSII Transactions on Internet and Information Systems (TIIS)
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• v.8 no.7
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• pp.2231-2245
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• 2014

Cognitive Radio (CR) has very promising potential to improve spectrum utilization by allowing unlicensed Secondary Users (SUs) to access the spectrum dynamically without disturbing licensed Primary Users (PUs). Mitigating interference is a fundamental problem in CR scenarios. This is particularly problematic for deploying CR in cellular networks, when users are located at the cell edge, as the inter-cell interference mitigation and frequency reuse are critical requirements for both PUs and SUs. Further cellular networks require higher cell edge performance, then SUs will meet more challenges than PUs. To solve the performance decrease for SUs at the cell edge, a novel Dynamic Spectrum Allocation (DSA) scheme based on Game Theory is proposed in this paper. Full frequency reuse can be realized as well as inter-cell interference mitigated according to SUs' sensing, measurement and interaction in this scheme. A joint power/channel allocation algorithm is proposed to improve both cell-edge user experience and network performance through distributed pricing calculation and exchange based on game theory. Analytical proof is presented and simulation results show that the proposed scheme achieves high efficiency of spectrum usage and improvement of cell edge SUs' performance.

• KSII Transactions on Internet and Information Systems (TIIS)
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• v.12 no.8
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• pp.3966-3991
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• 2018

Due to the lack of visualization services and organic combinations between public and private buildings data, the usability of the basic map has remained low. To address this issue, this paper reports on a solution that organically combines public and private data while providing visualization services to general users. For this purpose, factors that can affect building prices first were examined in order to define the related data attributes. To extract the relevant data attributes, this paper presents a method of acquiring public information data and real estate-related information, as provided by private real estate portal sites. The paper also proposes a pretreatment process required for intelligent machine learning. This report goes on to suggest an intelligent machine learning algorithm that predicts buildings' value pricing and future value by using big data regarding buildings' spatial information, as acquired from a database containing building value attributes. The algorithm's availability was tested by establishing a prototype targeting pilot areas, including Suwon, Anyang, and Gunpo in South Korea. Finally, a prototype visualization solution was developed in order to allow general users to effectively use buildings' value ranking and value pricing, as predicted by intelligent machine learning.

• KSII Transactions on Internet and Information Systems (TIIS)
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• v.12 no.11
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• pp.5269-5286
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• 2018

Task scheduling is one of the key issues in improving system performance and optimizing resource management in cloud computing environment. In order to provide appropriate services for heterogeneous users, we propose a novel task scheduling strategy with service differentiation, in which the delay sensitive tasks are assigned to the rapid cloud with high-speed processing, whereas the fault sensitive tasks are assigned to the reliable cloud with service restoration. Considering that a user can receive service from either local SaaS (Software as a Service) servers or public IaaS (Infrastructure as a Service) cloud, we establish a hybrid queueing network based system model. With the assumption of Poisson arriving process, we analyze the system model in steady state. Moreover, we derive the performance measures in terms of average response time of the delay sensitive tasks and utilization of VMs (Virtual Machines) in reliable cloud. We provide experimental results to validate the proposed strategy and the system model. Furthermore, we investigate the Nash equilibrium behavior and the social optimization behavior of the delay sensitive tasks. Finally, we carry out an improved intelligent searching algorithm to obtain the optimal arrival rate of total tasks and present a pricing policy for the delay sensitive tasks.

• The Journal of Society for e-Business Studies
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• v.7 no.2
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• pp.55-68
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• 2002

Internet group buying systems have been widely used recently. In those systems, because the reserve price is provided by the buyer, the success rate can be decreased if the reserve price is set too low compared with the normal price. Otherwise, an unsuitable successful bid can be made if the reserve price is set too high based on inaccurate information. Likewise, the seller's providing too high a bid price can deteriorate his/her own successful bid rate, whereas a successful bid with too low a price may make no profit in the sale. Therefore, pricing agents that recommend adequate prices based on the past buying and selling history data can be helpful. In this paper, we propose two kinds of agents. One suggests reserve prices to buyers based on the past buying history database of the system. The other recommends bid prices to a seller based on the past bidding history data of the company using the cost accounting theory. Through performance experiments, we show that the successful bid rate can increase by preventing buyers from making unreasonable reserve prices. Also, we show that, for the seller, the rate of successful bids with appropriate profits can increase. Using the pricing agents, we design and implement an XML-based group buying system.