Pricing under quality of service uncertainty: Market segmentation via statistical QoS guarantees

@article{Bhargava2008PricingUQ,
  title={Pricing under quality of service uncertainty: Market segmentation via statistical QoS guarantees},
  author={Hemant K. Bhargava and Daewon Sun},
  journal={European Journal of Operational Research},
  year={2008},
  volume={191},
  pages={1189-1204}
}
This article examines how performance-contingent pricing schemes with long-term statistical performance guarantees can be applied to many IT services. We study two forms of performance-contingent pricing, with rebate proportional to failure rate and fixed rebate for below-threshold performance. We show that threshold-performance contingency pricing can increase both profits and fairness (customers who receive higher benefits pay higher effective price) relative to standard pricing. But an even… CONTINUE READING

Similar Papers

Topics from this paper.

Citations

Publications citing this paper.
SHOWING 1-8 OF 8 CITATIONS

Pricing peer-produced services: Quality, capacity, and competition issues

  • European Journal of Operational Research
  • 2010
VIEW 3 EXCERPTS
CITES BACKGROUND
HIGHLY INFLUENCED

Game Based SBCA Cloud Resource Adjustment Method

  • 2019 21st International Conference on Advanced Communication Technology (ICACT)
  • 2019
VIEW 1 EXCERPT
CITES METHODS

A contract-ruled economic model for QoS guarantee in mobile peer-to-peer streaming services

  • 2012 IEEE 20th International Workshop on Quality of Service
  • 2012
VIEW 3 EXCERPTS
CITES BACKGROUND & METHODS

Product Differentiation for Software-as-a-Service Providers

  • Business & Information Systems Engineering
  • 2011
VIEW 1 EXCERPT
CITES BACKGROUND

Cloud Computing System Management Under Flat Rate Pricing

  • Journal of Network and Systems Management
  • 2010