Journal
NETNOMICS
Volume 22, Issue 2-3, Pages 283-316Publisher
SPRINGER
DOI: 10.1007/s11066-022-09156-4
Keywords
Auctions; Discrimination; Selling bandwidth; Pricing; ICT affordability; Set-aside mechanisms
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Funding
- Colciencias, Colombia [567/2012]
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Although technological developments have provided momentum for expanding commercial network deployments, the digital divide between the rich and poor remains an issue. This paper proposes a set-aside mechanism that adjusts prices and induces competition among regular users to provide affordable network services and increase resource allocation to the poorest.
Although technological developments have provided momentum to extend the frontier of commercially feasible network deployments, the latest data from ITU regarding affordability of ICT services shows that the digital divide between the rich and poor is still an open issue. Therefore, an economic framework is needed to create conditions for affordable network services. In this paper, we propose a set-aside mechanism that can satisfy this need by reserving resources for targeted groups and resolving the practical problem of having greedy users that rationally compete for cheaper resources. In this mechanism, prices are tailored to users' budget capacities. Our simulation results indicate that it is possible to increase the resource allocation for delivering services to the poorest by inducing regular users to compete among themselves.
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