The Comparison of Pricing Schemes for Cloud Services

This paper investigates subscription pricing, pay-per-use pricing, and two-part tariff from perspectives of a provider’s profit, consumer surplus, and social welfare, respectively. In particular, this paper extends previous studies on pricing schemes to two-part tariff in addition to subscription pricing and pay-per-use pricing. This paper shows that two-part tariff is more efficient than the other two pricing from a provider’s, consumers’ and social point of view.