Abstract. We describe the basic economic theory of pricing a congestible resource such as an ftp server, a router, a Web site, etc. In particular, we examine the implications of "congestion pricing" as a way to encourage efficient use of network resources. We explore the implications of flat pricing and congestion pricing for capacity expansion in centrally planned, competitive, and monopolistic environments.
MacKie-Mason and Varian REF consider the implications of flat and congestion-based pricing as a way to encourage efficient use of network resources.
Pricing congestible network resources
IEEE Journal on Selected Areas in Communications
Computer Science