Users facing volume-based and flat-rate-based charging schemes at the same time

Abstract

In the Internet, the data charging scheme has usually been flat rate. But more recently, especially for mobile data traffic, we have seen more diversity in the pricing offers, such as volume-based ones or cap-based ones. We propose in this paper to study the behavior of heterogeneous users facing two offers: a volume-based one and a flat-rate one. On top of that selection, we investigate 1) the relevance for an ISP to propose the two types of offers, and optimize the corresponding prices, and 2) the existence of a solution to the pricing game when the offers come from competing providers.