TAILIEUCHUNG - Wireless Mesh Networks 2010 Part 16

Tham khảo tài liệu 'wireless mesh networks 2010 part 16', kỹ thuật - công nghệ, cơ khí - chế tạo máy phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | Wireless Service Pricing under Multiple Competitive Providers and Congestion-sensitive Users 289 Fig. 3. Pricing model for two WSPs Basic model We model this oligopoly as a two-stage non-cooperative game first in stage 1 both WSPs set their prices to maximize their profits respectively. Then in stage 2 given prices quoted by both WSPs and their QoS the users decide whether purchase the service and if so from which WSP. Note that the two stages are solved sequentially. Given prices quoted by the WSPs and perceived QoS the users decide in Stage 2 to choose which WSP. Based on the decisions of the users in Stage 1 the WSPs adjust their optimal prices. This sequential decision-making process is illustrated in Fig. 3. Suppose there are two WSPs WSP1 and WSP2 in a market competing to maximize their individual profits. Assume WSP1 and WSP2 set prices P1 and P2 respectively per packet transmission and the costs for providing per packet transmission are C1 and C2 respectively. Let the profit of WSP1 and WSP2 be denoted as H1 and n2 respectively. Obviously n is a function of the price charged per packet Pi and the WSPj- s cost Ci. In this duopoly both WSPs are able to change their prices based on their congestion status while the price- and congestion-sensitive users who are connecting to one WSP are able to switch to WSP anytime they want. In other words the users association with the WSPs would be on a per-service or per-session basis. However each WSP only knows its own quoting prices it own cost and the users response to its quoting price and has no knowledge about its rival s price cost and the users response to its rival s price in real time. It is a realistic assumption because it is not allowed for a WSP to divulge its private information to its rivals. Therefore the users reaction to the multiple WSPs prices and QoS is the determining factor in this two WSPs price competition game. Assume the behavior of all users are identical and economically rational so we .

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