Cobb-Douglass Utility Function in Optimizing the Internet Pricing Scheme Model
| Main Authors: | Indrawati, Indrawati; Universitas Sriwijaya, Irmeilyana, Irmeilyana; Universitas Sriwijaya, Puspita, Fitri Maya; Universitas Sriwijaya, Putri Lestari, Meiza; Universitas Sriwijaya |
|---|---|
| Format: | Article info application/pdf eJournal |
| Bahasa: | eng |
| Terbitan: |
Universitas Ahmad Dahlan
, 2014
|
| Subjects: | |
| Online Access: |
http://journal.uad.ac.id/index.php/TELKOMNIKA/article/view/18 http://journal.uad.ac.id/index.php/TELKOMNIKA/article/view/18/pdf_75 |
Daftar Isi:
- The greater numbers of internet users the greater challenge will be tackled by ISP to provide good services but gain maximum profit. By analyzing Cobb-Douglass utility function we will obtain optimal pricing scheme. Wu and Banker analyzed modified Cobb-douglass utility function and obtained optimal model of flat fee and two part tariff for homogen consumers meanwhile we focus on getting optimal pricing scheme model by using original Cobb-Douglass utility function. The first step to conduct this research is by formulating Cobb-Douglass utility function then analyzing that function. The results show that we obtain optimal pricing scheme model for homogenous and heterogeneous consumer cases. The two-part tariff pricing scheme yield better optimal solution rather than flat fee and two-part tariff pricing scheme regarding with homogen consumers and heterogen consumers based on willingness to pay. For heterogeneous consumers based on consumption level, the optimal pricing scheme is on two-part tariff pricing scheme.