Proceeding_Mathematical model of information service pricing scheme based on utility functions of constant elasticity of substitution

Puspita, Fitri Maya (2022) Proceeding_Mathematical model of information service pricing scheme based on utility functions of constant elasticity of substitution. In: Proceedings of the 6th National Conference on Mathematics and Mathematics Education, Semarang.

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Abstract

Today, the internet has become an essential thing, so it becomes a challenge for service providers to provide the best service and gain maximum benefits by maintaining the utility functions of Constant Elasticity of Substitution (CES). This study seeks to formulate an optimal pricing scheme model analytically with three pricing schemes, namely flat-fee, usage-based, and two-part tariff on homogeneous consumer issues, heterogeneous consumers (high-end and low-end), and heterogeneous consumers (high-demand and low-demand). The models designed analytically through lemmas will be compared and analyzed to determine which pricing scheme models achieve the most optimal results based on CES utility functions. The optimal pricing scheme model for each type of consumer is applied to the mail traffic data obtained from one of the local servers in Palembang. The optimal profit obtained by ISPs for homogeneous consumers is if ISPs implement flat-fee and two-part tariff pricing schemes. The optimal advantage is obtained by ISPs applying heterogeneous (high-end and low-end) pricing schemes, namely two-part tariffs. For heterogeneous consumers (high-demand and low-demand), optimal profit is obtained by ISPs if applying the flat-fee scheme.

Item Type:	Conference or Workshop Item (Paper)
Subjects:	#3 Repository of Lecturer Academic Credit Systems (TPAK) > Conference or Workshop
Divisions:	08-Faculty of Mathematics and Natural Science > 44201-Mathematics (S1)
Depositing User:	Mrs Fitri Maya Puspita
Date Deposited:	11 May 2023 15:11
Last Modified:	11 May 2023 15:11
URI:	http://repository.unsri.ac.id/id/eprint/102126

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