Advertisement

A Price-Based Decision Policy to Mitigate the Tragedy of the Commons and Anti-Commons

  • M. Sumbwanyambe
  • A. L. Nel
Chapter
Part of the Lecture Notes in Electrical Engineering book series (LNEE, volume 229)

Abstract

In developing countries subsidies play an important role and are used in one way or another to extend the information and communication services to the information “have nots” through subsidized communication services. However, subsidies may have an impact on network resource utilization, quality of service and the amount of revenue generated. For example, subsidies may lead to low Quality of Service (QoS) and high resource utilization while in some instances unsubsidized services may lead to high quality of services and low utilization of resources. This see-saw effect may eventually lead to market failure and it may, now and then, destroy market efficiency. This phenomenon calls for a combined study, in which the relationship between subsidy, price, QoS and resource utilization is investigated. In this chapter, the impact of subsidies on quality of service and resource utilization in multitier communities is investigated. We try to find a middle ground between implementation of subsidy policy and its effects on QoS and resource utilization in a network.

Keywords

Heterogeneous communities ICTs Pricing policy Quality of service Subsidy Tragedy of the anti-commons Tragedy of the commons 

Notes

Acknowledgments

This work was partially supported by the University of Johannesburg commonwealth bursary fund.

References

  1. 1.
    Sumbwanyambe M, Nel AL (2012) A subsidy driven decision procedure to mitigate the tragedy of the commons and anti-commons. In: Lecture notes in engineering and computer science: proceedings of the world congress on engineering, WCE, UK, London, pp 1651–1656, 4–6 July 2012Google Scholar
  2. 2.
    Heller MA (1997) The tragedy of the anti-commons: property in the transition from Marx to markets. Harvard Law Rev 3:621–688Google Scholar
  3. 3.
    Ward MR Rural telecommunications subsidies do not help. http://www.uta.edu/faculty/mikeward/JRAP.pdf
  4. 4.
    Levin SL (2010) Universal service and targeted support in a competitive telecommunication environment. Telecommun Policy J 34:92–97Google Scholar
  5. 5.
    Ramos B, Saeed K, Pavlov O (2010) The impact of universal service obligations and international cross-subsidies on the dispersion of telephone services in developing countries. Socio-Econ Plan Sci 44:57–72Google Scholar
  6. 6.
    Amegashie JA (2006) The economics of subsidies. Crossroads 6(2):7–15Google Scholar
  7. 7.
    Sumbwanyambe M, Nel AL, Clarke WA (2011) Challenges and proposed solutions towards telecentre Sustainability: a Southern Africa case study. In: Proceedings of IST-Africa 2011, Gaborone, BotswanaGoogle Scholar
  8. 8.
    Harding G (1968) The tragedy of the commons. J Sci 168:1246–1248Google Scholar
  9. 9.
    TIBA (2012) South Africa’s universal service agency to offer big players subsidy to take voice and data to most rural areas. http://www.balancingact-africa.com/news/en/issue-no-398/telecoms/south-africa-s-unive/en. Accessed Feb 2012
  10. 10.
    Alesina A, Rodrik D (1994) Distributive politics and economic growth. Q J Econ 109(2):465–490CrossRefGoogle Scholar
  11. 11.
    Sumbwanyambe M, Nel AL (2012) Subsidy and revenue maximization in developing countries. In: Lecture notes in engineering and computer science: international multiconference of engineers and computer scientist, pp 1568–1573Google Scholar
  12. 12.
    Esselaar S, Gillwald A, Moyo M, Naidoo K (2009/2010) Towards evidence-based ICT Policy and regulation. S Afr Sector Perform Rev 2Google Scholar
  13. 13.
    Habeenzu S (2009/2010) Towards evidence-based ICT policy and regulation. Zambian Sector Perform Rev 2:1–38Google Scholar
  14. 14.
    DOC (2011) Doc documents. www.doc.gov.za
  15. 15.
    Oyedemi TD (2009) Social inequalities and the South Africa ICT access policy agendas. Int J Commun 3:151–168Google Scholar
  16. 16.
    Padayachie RR (2011) Budget vote of the department of communications. http://www.doc.gov.za/
  17. 17.
    Hayashi T (2011) Fostering globally accessible and affordable ICTs. http://www.itu.int/osg/spu/visions/papers/accesspaper.pdf
  18. 18.
    Sumbwanyambe M, Nel AL, Clarke WA (2011) Optimal pricing of telecomm services in a developing country: a Game theoretical approach. In: Proceedings of the 10th IEEE Africon conference. Livingstone Zambia, pp 24–26Google Scholar
  19. 19.
    Jagannathan S, Almeroth KC (2002) Prices issues in delivering E-content on-demand. ACM SiGecom Exch 3:19–27Google Scholar

Copyright information

© Springer Science+Business Media Dordrecht 2013

Authors and Affiliations

  1. 1.Department of Mechanical Engineering ScienceUniversity of JohannesburgAuckland ParkSouth Africa

Personalised recommendations