Issues in Pricing Internet Services

Challenges

Approach

Outline

Pricing Differentiated Services: Base Model

Outcome A. Prisoner’s Dilemma

Outcome B. No Pure-Strategy Equilibrium

General Conditions for Two-Users Case

Extension to Many-User Case

Properties of Equilibrium: an example

Properties of Equilibrium

Challenge

To Stabilize…

To be more efficient…

Our Solution

Pricing with Multiple Providers: Outline

Challenges

A Possible Implementation

Objectives

Model - Users

Model - Providers

Formulation: an example

Outcome of the Nash Game

Outcome of the Nash Game (cont)

Outcome of the Nash Game (cont)

Improve Outcome of the Game

Nash’s Bargaining Solution

An Example

Modified Bargaining Solution

Modified Bargaining Solution: Example

Our Approach

Example Revisited

Optimality Condition

Optimal Price: solution

Properties of the Equilibrium

Distributed Implementation

A Numerical Example

What about cost?

Summary and Ongoing Work

Pricing Wireless Access

General Formulation

Web Browsing Model of Client Utility

File Transfer Model of Client Utility

Summary of Results

References

"Thank you!"