Mathematical modelling on information service provider based independent goods utility function

• Main Authors: Puspita, Fitri Maya, Novesda, Grasiela, Yuliza, Evi, Octarina, Sisca, Zayanti, Des Alwine, Tanjung, Ayu Luviyanti
• Format: Conference Proceeding
• Language: English
• Subjects: Consumers; Demand; Internet service providers; Pricing; Tariffs; Traffic information; Utility functions
• ISSN: 0094-243X; 1551-7616
• DOI: 10.1063/5.0142268

This research analysis the internet pricing scheme model to maximize profits for ISPs (Internet Service Providers) by considering the utility function of Independent Goods. This study analyzes the types of flat-fee, usage-based, and two-part tariff pricing schemes for homogeneous consumers and heterogeneous consumers (high-end and low-end) and heterogeneous consumers (high-demand and low-demand). The pricing scheme model is then solved differentially by being applied to the local server data, SISFO traffic data. The results obtained are that ISPs will get maximum profit by implementing flat-fee, usage-based, and two-part tariff pricing schemes for homogeneous consumers. For high-end and low-end heterogeneous consumer types and high-demand and low-demand heterogeneous consumer types, the ISP will get maximum profit on the application of flat-fee, usage-based, and two-part tariff pricing schemes. However, ISPs will get the highest profit on homogeneous consumer types compared to the application of high-end and low-end heterogeneous consumer types and high-demand and low-demand heterogeneous consumers.