Instruct: Identify the main and secondary category of Arxiv papers based on the titles and abstracts
Query: The Role of Data Cap in Optimal Two-part Network Pricing   Internet services are traditionally priced at flat rates; however, many
Internet service providers (ISPs) have recently shifted towards two-part
tariffs where a data cap is imposed to restrain data demand from heavy users.
Although the two-part tariff could generally increase the revenue for ISPs and
has been supported by the US FCC, the role of data cap and its optimal pricing
structures are not well understood. In this article, we study the impact of
data cap on the optimal two-part pricing schemes for congestion-prone service
markets. We model users' demand and preferences over pricing and congestion
alternatives and derive the market share and congestion of service providers
under a market equilibrium. Based on the equilibrium model, we characterize the
two-part structures of the revenue- and welfare-optimal pricing schemes. Our
results reveal that 1) the data cap provides a mechanism for ISPs to transition
from the flat-rate to pay-as-you-go type of schemes, 2) both the revenue and
welfare objectives of the ISP will drive the optimal pricing towards
usage-based schemes with diminishing data caps, and 3) the welfare-optimal
tariff comprises lower fees than the revenue-optimal counterpart, suggesting
that regulators might want to promote usage-based pricing but regulate the
lump-sum and per-unit fees.

36
The categories of this paper are: cmp-lg
32
The categories of this paper are: atom-ph
7
The categories of this paper are: hep-th
17
The categories of this paper are: q-fin
6
The categories of this paper are: astro-ph
31
The categories of this paper are: ao-sci
18
The categories of this paper are: econ
30
The categories of this paper are: q-alg
16
The categories of this paper are: stat
13
The categories of this paper are: quant-ph
15
The categories of this paper are: nucl-ex
9
The categories of this paper are: nlin
37
The categories of this paper are: supr-con
10
The categories of this paper are: q-bio
29
The categories of this paper are: funct-an
34
The categories of this paper are: chem-ph