Service Price Discrimination in Wireless Network

Abstract

This paper discusses the price discrimination in wireless service allocation on the basis of game theory. The wireless service providers can supply the service with different prices. Two service price discrimination models are proposed. The first one is one wireless service provider with n types of wireless users. Each type has different preference parameter. The wireless users are proved to be individual rational and incentive compatible. The optimal quantity of the service and the optimal price for each type of wireless users are computed to maximize the utility of the wireless service provider. The second model is n service providers with k different prices. The optimal quantity of the service and the optimal prices are computed to maximize the utility of the wireless service provider.