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Author Nielsen, Norman R.
Source ACM Digital Library
Content type Text
Publisher Association for Computing Machinery (ACM)
File Format PDF
Language English
Subject Keyword Charging ♦ Costing ♦ Flexible pricing ♦ Computer pricing ♦ Allocation mechanims ♦ Pricing ♦ Resource allocation ♦ User motivation ♦ Priority charges
Abstract The widespread use of complex third generation computing systems has led to a much broader concern about the means by which the resources of these systems are allocated among the user community. One means that is suggested more and more frequently is a pricing procedure. In this paper the manner in which one would like to allocate computing resources is considered, and then the extent to which a pricing mechanism fits this mold is discussed. Inasmuch as pricing must serve as a rationing mechanism at times, consideration is given to the means by which prices can be adjusted flexibly in order to make a dynamic allocation of resources. Consideration is also given to the means by which users can be insulated from the harmful effects of frequent price fluctuations.Although the subject of pricing has been given a lot of attention recently, a number of misconceptions persist about its purpose and its operation. An attempt is made to clarify some of these misunderstandings and to highlight the advantages and disadvantages of pricing. Two illustrative pricing systems are also discussed in order to demonstrate the applicability of pricing in quite different environments.
Description Affiliation: Stanford Univ., CA (Nielsen, Norman R.)
Age Range 18 to 22 years ♦ above 22 year
Educational Use Research
Education Level UG and PG
Learning Resource Type Article
Publisher Date 2005-08-01
Publisher Place New York
Journal Communications of the ACM (CACM)
Volume Number 13
Issue Number 8
Page Count 8
Starting Page 467
Ending Page 474

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Source: ACM Digital Library