Abstract
Network externality is a vital characteristic of the products in economics of networks. Network congestion will lead to negative network externality when digital products are communicated in the net. It will effectively decrease the negative network externality via developing a suitable pricing mechanism. This paper begins with the utility of a single user and that of the whole network to build a network congestion utility model to analyze it. As TCP connection has an autonomous congestion-detecting mechanism which can increase the utilization of network resources, we regard the TCP connection pricing as the basis of our research.
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