TY - JOUR
TI - Cobb-Douglass Utility Function in Optimizing the Internet Pricing Scheme Model
AU - Indrawati, Indrawati; Irmeilyana, Irmeilyana; Puspita, Fitri Maya; Putri Lestari, Meiza
IS - Vol 12, No 1: March 2014
PB - Universitas Ahmad Dahlan
JO - TELKOMNIKA (Telecommunication Computing Electronics and Control)
PY - 2014
SP - 227
EP - 240
UR - http://journal.uad.ac.id/index.php/TELKOMNIKA/article/view/18
AB - 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.