Towards Pricing Mechanisms for Delay Tolerant Services


  • Luis Andres Marentes Universidad de los Andes
  • Tilman Wolf University of Massachusetts, Amherst
  • Anna Nagurney University of Massachusetts, Amherst
  • Yezid Donoso Universidad de los Andes, Bogota, Colombia


Delay Tolerant Networks Pricing, Capacity Management, Economic Models


One of the applications of Delay Tolerant Networking (DTN) is rural networks. For this application researchers have argued benefits on lowering costs and overcoming challenging conditions under which, for instance, protocols such as TCP/IP cannot work because their underlying requisites are not satisfied. New responses are required in order to understand the true adoption opportunities of this technology. Constraints in service level agreements and viable alternative pricing schemes are some of the new issues that arise as a consequence of the particular operation mode. In this paper, we propose a novel model for pricing delay tolerant services, which adjusts prices to demand variability subject to constraints imposed by the DTN operation. With this model we also show how important parameters such as channel rental costs, cycle times of providers, and market sensitivities affect business opportunities of operators.

Author Biographies

Luis Andres Marentes, Universidad de los Andes

Systems and computing engineering

Tilman Wolf, University of Massachusetts, Amherst

Department of Electrical and Computer Engineering

Associate Dean of Engineering (Graduate Studies and Operations)

Anna Nagurney, University of Massachusetts, Amherst

Operations and Information Management

Director - Virtual Center for Supernetworks

Yezid Donoso, Universidad de los Andes, Bogota, Colombia

Department of Systems and Computing Engineering


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