Demand and Supply Model in the Network Market: Two-Sided Markets the Case of the Cellular Industry

In this paper we reconsidered several pricing policies in the network industry and compared the advantages of some (five) policies on other policies from point of views of the monopoly who considers profit maximization The uniqueness of the network industry is that the demands for services include at least two parties, the sender of a message and the receiver of the message. These demands that are not necessarily symmetric can be estimated very accurately using nowadays technologies like RFID etc. by seller of the network services. Knowing the accurate demands the optimal pricing can be determined.