INDIVIDUAL TARIFFS FOR MOBILE SERVICE BUNDLES - A Negotiation Calculation Tool

Louis François Pau, Hong Chen

2006

Abstract

This paper aims to develop a bargaining model for calculation of individual tariffs for mobile service. In almost all publmic communication services today , tariffs are set unilateraly by the suppliers for some generic services ; the present and future emphasis on both unique content needs,and on service personalization, restrict the old tariffing principle to those users who only need basic universal services . Realizing this evolution , the ultimate goal is to provide a tool for computing individual tariffs. The paper first looks at the intrinsic drivers of individual tariffs both from sociological and economic perspectives. The paper proceeds further with a bargaining model for individual tariffs which is centered on user and supplier behaviours. The user, instead of being fully rational, has “bounded rationality” and his behaviours are not only subject to economic constraints but also influenced by social needs. The supplier can be either a firm (typically a communications service operator) or community ; each supplier has his own goals which lead to different behaviors. In the proposed solution, individual tariffs are decided through interactions between the user and the supplier. Game theory is employed to provide structured analyses of the interactions and tariff design. We developed a computational model based on the bargaining model. It can be used to determine the individual tariff between a firm and an individual user. Preliminary results, which are based on a music training service treated as a bundle of communications, content, and assistance , show that individual tariffs can be beneficial to both the user and the supplier.

Paper Citation

in Harvard Style

François Pau L. and Chen H. (2006). INDIVIDUAL TARIFFS FOR MOBILE SERVICE BUNDLES - A Negotiation Calculation Tool . In Proceedings of the International Conference on e-Business - Volume 1: ICE-B, (ICETE 2006) ISBN 978-972-8865-62-7, pages 31-37. DOI: 10.5220/0001424400310037

in Bibtex Style

@conference{ice-b06,
author={Louis François Pau and Hong Chen},
title={INDIVIDUAL TARIFFS FOR MOBILE SERVICE BUNDLES - A Negotiation Calculation Tool},
booktitle={Proceedings of the International Conference on e-Business - Volume 1: ICE-B, (ICETE 2006)},
year={2006},
pages={31-37},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0001424400310037},
isbn={978-972-8865-62-7},
}

in EndNote Style

TY - CONF
JO - Proceedings of the International Conference on e-Business - Volume 1: ICE-B, (ICETE 2006)
TI - INDIVIDUAL TARIFFS FOR MOBILE SERVICE BUNDLES - A Negotiation Calculation Tool
SN - 978-972-8865-62-7
AU - François Pau L.
AU - Chen H.
PY - 2006
SP - 31
EP - 37
DO - 10.5220/0001424400310037