Quasi Linear Utility Function Based-Wireless Internet Incentive-Pricing Models

Abstract

In the internet pricing scheme, internet incentive pricing is used to optimize the price of online services. The desire to pay is one of the prerequisites for customers to subscribe to the service in this study, hence diverse consumers are used. With the growing demand for internet services, service providers are competing to deliver the finest service possible in order to improve service quality and attract customers. Then, using a combination of bundling, a quasi linear utility function, high and low demand users, reverse charging, and a two-part tariff pricing system, this study aims to find the best model and solution for an enhanced internet incentive-pricing model. The computation used to test the model using real data reveals that in this scenario $\beta$ as a parameter and $\gamma$ as a parameter with two-part tariff-pricing scheme when $FG_{xy}$ increases and $a$ increases, as numerical example from local data shows an incentive value of IDR 797.55 / kbps. This result shows that an enhanced incentive-pricing strategy has benefited ISPs.