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Dynamic Price Discovering Models for Differentiated Wireless Services

Swarup Mandal1, Debashis Saha2, and Mainak Chatterjee3
1. XLRI School of Management, Jamshedpur C. H. Area (east), Jamshedpur, India
2. Indian Institute of Management Calcutta Joka, D. H. Road, Kolkata, India
3. Electrical Computer Engineering University of Central Florida Orlando

Abstract—Heterogeneous subscriber base with wide rangeof wireless services makes the wireless service market morechallenging for a service provider (SP). This challenge isrelated to the revenue model of the SP, where pricing policyplays a central role. The pricing policy should be such thatan SP will recover the investment while keeping the desiredlevel of customer satisfaction. An ideal pricing policy shouldbe less complex and be able to price the service close to theworth, a subscriber attached to it. This calls for dynamicprice discovering models for differentiated wireless service.In this paper, we have proposed auction based pricediscovering models like uniform pricing auction anddiscriminatory pricing auction for dynamic pricing ofdifferentiated wireless services. We have compared theirperformances with flat-pricing scheme for differentiatedwireless services, which is quite popular in the wirelessdomain. Simulation results show that auction based modelshave a potential to replace the traditional flat pricingmodels.

Keywords- Differentiated wireless service pricing, Priceiscovery models, auctions, flat pricing.

Cite: Swarup Mandal, Debashis Saha, Mainak Chatterjeeek, "Dynamic Price Discovering Models for Differentiated Wireless Services," Journal of Communications, vol. 1, no. 5, pp. 50-56, 2006.