Individual Tariffs for Mobile Communication Services

25 Pages Posted: 18 Sep 2007

See all articles by H. Chen

H. Chen

National Taiwan University; University of Science and Technology of China (USTC)

Louis-Francois Pau

Copenhagen Business School (CBS); Rotterdam School of Management; L.M. Ericsson; GIBS

Date Written: August 28, 2007

Abstract

This paper introduces a conceptual framework and a computational model for individual tariffs for mobile communication services. The purpose is to provide guidance for implementation by communication service suppliers or user groups alike. The paper first examines the sociological and economic incentives for personalized services and individual tariffs. Then it introduces a framework 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 subject to economic constraints and influenced by social needs. The supplier can belong to different types of entities such as firms and communities; each has his own goals which lead to different behaviors. Individual tariffs are decided through interactions between the user and the supplier and can be analyzed in a structured way using game theory. A numerical case in mobile music training is developed to illustrate the concepts.

Keywords: risks, mobile communication services, Individual tariffs, computational games

Suggested Citation

Chen, H. and Pau, Louis-Francois, Individual Tariffs for Mobile Communication Services (August 28, 2007). ERIM Report Series Reference No. ERS-2007-054-LIS, Available at SSRN: https://ssrn.com/abstract=1015161

H. Chen (Contact Author)

National Taiwan University

University of Science and Technology of China (USTC)

96, Jinzhai Road
Hefei, Anhui 230026
China

Louis-Francois Pau

Copenhagen Business School (CBS) ( email )

Solbjerg Plads 3
Frederiksberg C, DK - 2000
Denmark

Rotterdam School of Management ( email )

P.O. Box 1738
Room T08-21
3000 DR Rotterdam, 3000 DR
Netherlands

L.M. Ericsson ( email )

Kista
Sweden

GIBS ( email )

Lynnwood Road
Pretoria 5100, 0002
South Africa

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