Revisiting internet access pricing for loyal customers: The long-term interaction case

Tuan Anh Trinh, Laszlo Gyarmati

Research output: Chapter in Book/Report/Conference proceedingConference contribution

1 Citation (Scopus)

Abstract

Customer loyalty as part of user behaviour has significant impact on the Internet Service Providers' (ISPs) price setting strategies as shown recently in [1]-[5]. However, these papers focused mainly on short-term interactions of the ISPs, which - we believe - is not usually the case in practice as ISPs have to be aware of the long-term effects of their pricing decisions. Future-aware decision making is even more important if the structure of the local ISP market changes, e.g. a new ISPenters the market. In this paper, we address long-term pricing strategies of ISPs on local access markets with costumer loyalty. The contribution of the paper is threefold. Firstly, we present a case by empirical analysis for a user loyalty model, which differs from usual models as it is based on the price difference of the ISPs. Secondly, we present ISP pricing strategies on static ISP markets using game-theoretical tools. Thirdly, we model the dynamic ISP market with Stackelberg leader-follower game and propose equilibrium pricing strategies, taking into account the impacts of expected future incomes. Finally, we quantify and evaluate the effects of uncertainties of long-term decisions by simulating ISP markets.

Original languageEnglish
Title of host publication2009 Next Generation Internet Networks, NGI 2009
DOIs
Publication statusPublished - 18 Nov 2009
Externally publishedYes
Event2009 Next Generation Internet Networks, NGI 2009 - Aveiro, Portugal
Duration: 1 Jul 20093 Jul 2009

Other

Other2009 Next Generation Internet Networks, NGI 2009
CountryPortugal
CityAveiro
Period1/7/093/7/09

Fingerprint

Internet service providers
Internet
Costs
Decision making

ASJC Scopus subject areas

  • Computer Networks and Communications
  • Hardware and Architecture

Cite this

Revisiting internet access pricing for loyal customers : The long-term interaction case. / Trinh, Tuan Anh; Gyarmati, Laszlo.

2009 Next Generation Internet Networks, NGI 2009. 2009. 5175780.

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Trinh, TA & Gyarmati, L 2009, Revisiting internet access pricing for loyal customers: The long-term interaction case. in 2009 Next Generation Internet Networks, NGI 2009., 5175780, 2009 Next Generation Internet Networks, NGI 2009, Aveiro, Portugal, 1/7/09. https://doi.org/10.1109/NGI.2009.5175780
Trinh, Tuan Anh ; Gyarmati, Laszlo. / Revisiting internet access pricing for loyal customers : The long-term interaction case. 2009 Next Generation Internet Networks, NGI 2009. 2009.
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