An Analysis of Incentives for Network Infrastructure Investment Under Different Pricing Strategies

Abstract

In this paper we present an analysis of investment incentives for network infrastructure owners under two different pricing strategies: congestion based negative externality pricing and the prevalent flat rate pricing. The challenge in a networked environment is to increase capacity of the different components of the network appropriately based on demand… (More)
DOI: 10.1287/isre.1090.0253

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