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Nonetheless, there are two unknowns in the problem that enhance the issue for locating an optimum pricing. In this paper, we show that a dynamic pricing exists in multi-demand markets with 4 gamers, multi-demand markets with at most two optimal allocations, and tri-demand markets. In this work we current two contributions: (1) we develop a novel way of mapping site visitors and topology data to a demand and price mannequin; and (2) we match this model on three massive real-world networks: an European transit ISP, a content material distribution network, and an academic analysis community, and run counterfactuals to evaluate the consequences of different pricing strategies on both the ISP revenue and the consumer surplus. In contrast to nicely-identified prior criticism of established SCC models, including DICE and RICE (Stern et al., 2021), we base our proposal totally on the statement that the present model innovation course of for built-in evaluation fashions (IAMs) isn’t optimal. The first model is based on the assumption that the volatility elasticity is fixed, which is known as fixed volatility elasticity (CVE) mannequin.

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