I use the data from this experiment to estimate the demand for bandwidth and the value of waiting time for users. The parameter estimates for the demand functions for bandwidth are plausible and well-behaved. The parameter estimates for the value of time are, on average, very low, but there are some subjects with relatively high time values.
Users can change their requested QoS instantaneously and are billed monthly for their usage.
In these experiments users were offered the choice of 6 different bandwidths, ranging from 8 Kbs to 128 Kbs. Users could choose 8 Kbs service for free at any time. Each Sunday a new set of prices were chosen for the other bandwidths, ranging from .1 cents to 12 cents per minute of use. Reduced Form Estimates Figure 1 depicts a pie chart of total usage. Since 8 Kbs was free, users tended to keep it on all the time.