Optimal Smart Prepayment for Mobile Access Service via Stackelberg Game
In this paper we propose a smart prepayment for mobile access network Service Provider (SP) to charge End-Users (EUs). Prepayment is a desirable charging approach, since it helps the SP to reduce its loss in bad-debt and capital devaluation. Meanwhile, Quality of Service (QoS) is a major concern from the EUs’ perspective, especially when they have heavy traffic demands and suffer from network congestion due to limited access bandwidths. Our proposed prepayment thus aims at improving both the SP’s economic reward and the EUs’ QoS. To analyze the benefit from the proposed prepayment scheme, we model the interaction between the SP and the EUs as a Stackelberg game, which is based on the rationale that improved QoS will be an incentive for the EUs to prepay. In this game model, the SP plays as a leader and determines its prepayment policy to optimize its reward, and the EU plays as a game follower and determines its prepaid amount as a response to the SP’s policy. The equilibrium of this game model strongly depends on the EUs’ traffic load level, which we quantify and analyze in depth. Our results show that both of the SP and the EUs can benefit from the equilibrium of the game model, implying that the proposed prepayment scheme will yield a desirable win-win outcome.
KeywordsSmart pricing Mobile network service Optimization Stackelberg game
This work was supported in part by the National Natural Science Foundation of China under Grant 61572440 and Grant 61379122, in part by the Zhejiang Provincial Natural Science Foundation of China under Grant LR17F010002 and Grant LR16F010003, and in part by the Young Talent Cultivation Project of Zhejiang Association for Science and Technology (2016YCGC011).
- 1.Sen, S., Wong, C.J., Ha, S., Chiang, M.: Pricing Data: A Look at Past Proposals, Current Plans, and Future Trends. http://arxiv.org/abs/1201.4197
- 2.Hande, P., Chiang, M., Calderbank, A.R.: Network rate allocation with content provider participation. In: Proceedings of the 28th IEEE International Conference on Computer Communications (INFOCOM 2009) (2009)Google Scholar
- 3.Wu, Y., Kim, H., Hande, P., Chiang, M., Tsang, D.H.K.: Revenue sharing among ISPs in two-sided markets. In: Proceedings of the 30th IEEE International Conference on Computer Communications (INFOCOM 2011) (2011)Google Scholar
- 4.Ma, R., Chiu, D.M., Lui, J.C.S., Misra, V., Rubenstein, D.: Interconnecting eyeballs to content: a shapley value perspective on ISP peering and settlement. In: Proceedings of the 3rd International Workshop on Economics of Networked Systems (NetEcon 2008) (2008)Google Scholar
- 6.Kesidis, G., Das, A., de Veciana, G.: On flat-rate and usage-based pricing for tiered commodity internet services. In: Proceedings of the CISS 2008 (2008)Google Scholar
- 7.Jiang, L., Parekh, S., Walrand, J.: Time-dependent network pricing and bandwidth trading. In: Proceedings of IEEE NOMS Workshop 2008 (2008)Google Scholar
- 9.Anning, P.: Prepaid: Issues, Economics and Growth. Prepaid International Forum, October 2012. http://prepaidforum.org/live/wp-content/uploads/2012/11/PIF-White-Paper_Prepaid_-Issues-Economics-Growth.pdf
- 10.Sprint Nextel Reports First Quarter 2011 Results. http://newsroom.sprint.com/article_display.cfm?article_id=1879
- 11.HP Intel Solution Center Blueprint: Prepaid Services for New Generation Mobile Network. http://www.hp.com/products1/solutioncenters/pdfs/prepaid_blueprint.pdf
- 17.Shen, H., Basar, T.: Optimal nonlinear pricing for a monopolistic network service provider with complete and incomplete information. IEEE JSAC 25(6), 1216–1223 (2007)Google Scholar
- 18.Le Cadre, H., Bouhtou, M., Tuffin, B.: A pricing model for a mobile network operator sharing limited resource with a mobile virtual network operator. In: Reichl, P., Stiller, B., Tuffin, B. (eds.) ICQT 2009. LNCS, vol. 5539, pp. 24–35. Springer, Heidelberg (2009). https://doi.org/10.1007/978-3-642-01796-4_4CrossRefGoogle Scholar
- 19.Basar, T., Olsder, G.T.: Dynamic Noncooperative Game Theory, 2nd edn. SIAM Series Classics in Applied Mathematics. SIAM, PhiladephiaGoogle Scholar