Abstract: This paper studies the influence of two different Internet pricing schemes on the internet consumption by the means of simulation.In the Internet supply market,we establish a Bertrand duopoly game model:one Internet Service Provider(ISP)with flat-rate pricing scheme for its service and the other ISP with two-part pricing scheme-fixed access fee plus usage fee.Based on the survey data of SSIC,we create the Internet expenditure and consumption time of each consumer using random number generation method,simulate the consumption choices under different pricing schemes,and then analyze the effect of pricing strategies on the revenue of ISP,the consumers’ consumption behavior and the total social welfare.

Key words: Internet pricing, quality of services, Bertrand duopoly model, social welfare