Research on the Associated Pricing Strategy in Telecom Industry

  • Authors:

  • Xin Yue;Junjie Xu;Zhanhong Xin

  • Affiliations:

  • School of Economics and Management, Beijing University of Posts and Telecommunications, Beijing, China 100876;School of Economics and Management, Anqing Teachers College, Anhui, China 246133;School of Economics and Management, Beijing University of Posts and Telecommunications, Beijing, China 100876

  • Venue:
  • APNOMS '08 Proceedings of the 11th Asia-Pacific Symposium on Network Operations and Management: Challenges for Next Generation Network Operations and Service Management
  • Year:
  • 2008

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Abstract

Pricing strategy is one of the important issues in telecom industry for each player in the tri-game model. Being a conjunctive focus between users and service provider, carrier's pricing strategy takes an outstanding role in telecom chain. By analyzing the relation among the players, a dynamic relation model between carrier and service provider was provided to solve this tri-game problem and its solutions were found. Furthermore, the stability of the solution was also investigated via isoclinic lines method. In addition, supposing the game model was disturbed because of carrier's unexpected price adjustment, three responses of service provider were discussed with corresponding comments. By quantitative analysis, finally the work made a conclusion that, in order to keep a sustainable development in an uncertain market, service provider must endeavor to enhance the service's attraction by constantly improving quality of its content.