Optimal Pricing and Capacity Allocation in Vertically Differentiated Web Caching Services (original) (raw)
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This is a variation of the two-sided market model of [10]: Demand D is concave in \tilde{D} in (16) of [10] So, in (5) of [10] and after Theorem 2, take the parametric case 0 < a <1. Thus, demand D is both decreasing and concave in price p, and so the utilities (U=pD) are also concave in price. Also, herein a simpler illustrative demand-response model is used in Appendix A and B.