Time-dependent pricing for revenue maximization of network service providers considering users preference

Cheng Zhang, Bo Gu, Sugang Xu, Kyoko Yamoriy, Yoshiaki Tanaka

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

    5 Citations (Scopus)

    Abstract

    Due to network users' different time-preference, network traffic load differs significantly at different time. In traffic-peak time, the quality of service provided to network users may deteriorate due to congestion. There are two ways to improve the quality of services: (1) Network service providers (NSPs) over-provision network capacity by investment; (2) NSPs use pricing to reduce the traffic at traffic-peak time by exploiting the elasticity of demand with respect to price. However, over-provisioning network capacity can be costly. Therefore, some researchers have proposed time-dependent pricing to control congestion as well as improve the revenue of NSP. To the best of our knowledge, all of the literature related to time-dependent pricing scheme only considers the monopoly NSP case. In this paper, a duopoly NSP case is studied. The NSPs try to maximize their overall revenue by setting time-dependent price, while users choose NSP by considering their own preference, congestion status in the networks, the price set by the NSPs and the switching cost set by NSPs. Analytical and experimental results show that the time-dependent pricing (TDP) benefits the NSPs, but the revenue improvement is limited due to the competition effect.

    Original languageEnglish
    Title of host publication15th Asia-Pacific Network Operations and Management Symposium: "Integrated Management of Network Virtualization", APNOMS 2013
    Publication statusPublished - 2013
    Event15th Asia-Pacific Network Operations and Management Symposium: "Integrated Management of Network Virtualization", APNOMS 2013 - Hiroshima
    Duration: 2013 Sep 252013 Sep 27

    Other

    Other15th Asia-Pacific Network Operations and Management Symposium: "Integrated Management of Network Virtualization", APNOMS 2013
    CityHiroshima
    Period13/9/2513/9/27

    Fingerprint

    Costs
    Quality of service
    Telecommunication traffic
    Elasticity
    Time-dependent pricing
    Service provider
    Revenue maximization
    User preferences
    Revenue

    ASJC Scopus subject areas

    • Computer Networks and Communications
    • Management Science and Operations Research

    Cite this

    Zhang, C., Gu, B., Xu, S., Yamoriy, K., & Tanaka, Y. (2013). Time-dependent pricing for revenue maximization of network service providers considering users preference. In 15th Asia-Pacific Network Operations and Management Symposium: "Integrated Management of Network Virtualization", APNOMS 2013 [6665268]

    Time-dependent pricing for revenue maximization of network service providers considering users preference. / Zhang, Cheng; Gu, Bo; Xu, Sugang; Yamoriy, Kyoko; Tanaka, Yoshiaki.

    15th Asia-Pacific Network Operations and Management Symposium: "Integrated Management of Network Virtualization", APNOMS 2013. 2013. 6665268.

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

    Zhang, C, Gu, B, Xu, S, Yamoriy, K & Tanaka, Y 2013, Time-dependent pricing for revenue maximization of network service providers considering users preference. in 15th Asia-Pacific Network Operations and Management Symposium: "Integrated Management of Network Virtualization", APNOMS 2013., 6665268, 15th Asia-Pacific Network Operations and Management Symposium: "Integrated Management of Network Virtualization", APNOMS 2013, Hiroshima, 13/9/25.
    Zhang C, Gu B, Xu S, Yamoriy K, Tanaka Y. Time-dependent pricing for revenue maximization of network service providers considering users preference. In 15th Asia-Pacific Network Operations and Management Symposium: "Integrated Management of Network Virtualization", APNOMS 2013. 2013. 6665268
    Zhang, Cheng ; Gu, Bo ; Xu, Sugang ; Yamoriy, Kyoko ; Tanaka, Yoshiaki. / Time-dependent pricing for revenue maximization of network service providers considering users preference. 15th Asia-Pacific Network Operations and Management Symposium: "Integrated Management of Network Virtualization", APNOMS 2013. 2013.
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