WWW: Beyond the Basics

Chapter 8. Commerce

8.4.2. Pricing as congestion control

In Economic FAQs About the Internet (MacKie-Mason), the authors consider different methods of congestion control for WWW traffic that are not based on the details of communication protocols. To date, most attempts at congestion control on the Internet have been voluntary in nature. With increasing demands for network bandwidth, pricing-related congestion control may become a necessary reality.

The authors (MacKie-Mason) propose a "smart market" where users place a 'bid' representing their willingness to pay to get their traffic through a congested network. If the network is not congested, then no charges would be assessed to the users. If the network is congested and all the users are bidding, then the lowest-bid packets could be dropped from the network. Users are only charged the bid of the lowest-bid packet that was allowed through the network. This allows users to be charged only what is necessary for their desired level of service.

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Copyright © 1996 Patrick N. Brooks.
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Patrick N. Brooks <pbrooks@vt.edu>