✦ LIBER ✦

Competition and evolution of linear and two-part tariff

✍ Scribed by Benlin Shi; Yang Song; Changchen Liu; Yunfeng Luo

Publisher: Elsevier Science
Year: 2009
Tongue: English
Weight: 519 KB
Volume: 57
Category: Article
ISSN: 0898-1221
DOI: 10.1016/j.camwa.2008.10.011

No coin nor oath required. For personal study only.

✦ Synopsis

The duopoly competition model presented in this paper tries to explain why a twopart tariff exists in the telecommunication industry. The investigation of competition and evolution between linear and two-part tariffs shows how the growth of the market and the sequence of action may affect equilibrium. The two pricing patterns are assumed to be virtual participants to constitute a tariff competition and evolution model, and by calculation, we can obtain metaphase equilibrium and evolution equilibrium. The conclusion shows that optimized Pareto equilibrium should be carried out by combining linear pricing and buffet pricing, this case being presented as a three-part tariff when many sub-markets coexist.

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