Abstract
The current fee and service structure of the Internet could lead to an inefficient allocation of scarce network resources and foster congestion. Usage pricing has been proposed as a solution to this dual problem. However, pricing in isolation may not be very suitable unless it is coupled with some effective performance measures. Non-cooperative environment model has been proposed to study the issues of usage pricing and bandwidth hogging. Improved hybrid scheme for differentiated service and pricing has been evolved and a method to quantify the heterogeneity of user preferences across services proposed. It is observed that this scheme may lower the relative welfare of malicious users in terms of a suitable metric.
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