Pricing as a demand management tool for record communications
DiMaggio, Kathryn A.
Gates, William R.
Boger, Dan C.
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The Naval Telecommunications System (NTS), by achieving connectivity through various networks, provides record communications within the Navy. This service is provided to a wide variety of users with different requirements. Currently, this service is provided without cost to the user. Because this service is free, there is no overt incentive to economize on its use. This may be one reason for an increase in message volume in past years. As a result of the overwhelming demand for record communications, the Naval Telecommunications System has experienced periods of delay in delivering messages to their destinations. This thesis looks at how prices could be used as a demand management tool, to ensure messages reach their destination as prescribed by the originator. It also proposes a cost estimation model which, if implemented, could provide justifiable cost based prices and serve as a basis for demand based and congestion based prices.
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