Chapter 2 Chapter 2 A theoretical evaluation of demand for access to the Internet and a discussion of congestion pricing schemes. Countless professionals have already established the necessity and efficacy of congestion pricing. There continues to be high growth rates of users joining the Internet and high growth rates of the bandwidth maximizing technologies. This report will continue to outline the theoretical framework for congestion pricing and will then estimate what users may be willing to pay under a congested pricing scheme and network. Demand for access reflects how much a person is willing to pay to receive access to the Internet.
Usage implies how much a person values transmitting information once access has been attained.
Demand for usage reflects how much a person will congest the network and is theoretically outlined below. Price of usage 2. Cross-price effects 3. Income effects 4. User preferences 5.