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Market Managed Internet in a Corporate Environment

de Briune, Annelies

HPL-2002-15

Keyword(s): market managed; variable pricing; multiservice internet

Abstract: M3I assumes that internet technology is becoming the infrastructure of the future for any information that can be transmitted digitally, including voice, audio, video and data service of all kinds. This means that in the future shared resources like the internet can get congested with a need for an economically fair allocation method. M3I suggests using market forces for internet resource management. M3I stands for Market Managed Multiservice Internet. Members of the M3I project team are looking into the ability to change quality of service within seconds and to reduce bad congestion by communicating price changes in real- time to customers. Consumer research done at the research lab of BT and at the University of California at Berkeley show that consumers are interested in using variable pricing. Would using market mechanisms and variable pricing work in a corporate environment as well? That is the main question I am trying to answer in this report. A questionnaire with 71 questions about internet use, shared resources and market mechanisms has been sent out to employees of 3 big corporations. The results of 28 completed questionnaires are described in this report.

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