Expected capacity, because it represents how resources are allocated when they are in demand, represents a rational basis for cost allocation.
Predictor: Clark, David D.
Prediction, in context:David D. Clark stated the following in a presentation at the MIT workshop on Internet Economics in March 1995: ”Key to the success of the Internet is its high degree of traffic aggregation among a large number of users, each of whom has a very low duty cycle. Because of the high degree of statistical sharing, the Internet makes no commitment about the capacity that any user will actually receive. It does not make separate capacity commitments to each separate user. Based on this … [I propose] a service enhancement called ‘expected capacity,’ which allows a service provider to identify the amount of capacity that any particular subscriber is to receive under congested conditions. Expected capacity is not constrained to a single service model, such as minimum-fixed bandwidth, but can be any usage profile the provider and subscriber agree on … Expected capacity, because it represents how resources are allocated when they are in demand, represents a rational basis for cost allocation.”
Date of prediction: March 1, 1995
Topic of prediction: Information Infrastructure
Subtopic: Cost/Pricing
Name of publication: The Journal of Electronic Publishing
Title, headline, chapter name: A Model for Cost Allocation and Pricing in the Internet
Quote Type: Direct quote
Page number or URL of document at time of study:
http://www.press.umich.edu/jep/works/ClarkModel.html
This data was logged into the Elon/Pew Predictions Database by: Catalfumo, Cara J.