IDEAS home Printed from https://ideas.repec.org/a/spr/telsys/v71y2019i1d10.1007_s11235-018-0504-7.html
   My bibliography  Save this article

Zero-rating Internet platforms formation: a game theoretic analysis

Author

Listed:
  • Masoud Asghari

    (Urmia University)

  • Saleh Yousefi

    (Urmia University)

Abstract

Zero-rating Internet is a term that is used for not counting data usage of end-users for accessing basic capabilities of some websites via mobile network operators. Recently, an open zero-rating platform called Free Basics is offered by Facebook which in addition to providing free basic services of Facebook to the end-users, it allows other websites to provide their contents as zero-rated through the platform for free. In this paper, we provide a game theoretic analysis to investigate the reasons behind the formation of fully or partially open zero-rating platforms such as Free Basics. For this purpose, a variant of a specific dynamic game called asymmetric volunteer’s timing dilemma is used to model zero-rating platforms formation with content providers as the players. The general solution of the game is determined as a form of sub-game perfect Nash equilibrium (SPNE). Moreover, specific forms of utility functions for content providers are introduced with consideration of network effects to draw SPNE of the game and demonstrate the behaviors of the involved parameters in the game results. The modeling and its solution helps us to explain current state of the zero-rating platforms and its stability. In particular, our result is in accord with the formation of Free Basics platform by Facebook.

Suggested Citation

  • Masoud Asghari & Saleh Yousefi, 2019. "Zero-rating Internet platforms formation: a game theoretic analysis," Telecommunication Systems: Modelling, Analysis, Design and Management, Springer, vol. 71(1), pages 93-109, May.
    • Handle: RePEc:spr:telsys:v:71:y:2019:i:1:d:10.1007_s11235-018-0504-7
    DOI: 10.1007/s11235-018-0504-7
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11235-018-0504-7
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s11235-018-0504-7?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Nanjira Sambuli, 2016. "Challenges and opportunities for advancing Internet access in developing countries while upholding net neutrality," Journal of Cyber Policy, Taylor & Francis Journals, vol. 1(1), pages 61-74, January.
    2. Luca Belli, 2017. "Net neutrality, zero rating and the Minitelisation of the internet," Journal of Cyber Policy, Taylor & Francis Journals, vol. 2(1), pages 96-122, January.
    3. Jun-Zhou He & Rui-Wu Wang & Yao-Tang Li, 2014. "Evolutionary Stability in the Asymmetric Volunteer's Dilemma," PLOS ONE, Public Library of Science, vol. 9(8), pages 1-6, August.
    4. Andrew J. Healy & Jennifer G. Pate, 2018. "Cost asymmetry and incomplete information in a volunteer’s dilemma experiment," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 51(3), pages 465-491, October.
    5. Goeree, Jacob K. & Holt, Charles A. & Smith, Angela M., 2017. "An experimental examination of the volunteer's dilemma," Games and Economic Behavior, Elsevier, vol. 102(C), pages 303-315.
    6. Hironori Otsubo & Amnon Rapoport, 2008. "Dynamic Volunteer's Dilemmas over a Finite Horizon," Journal of Conflict Resolution, Peace Science Society (International), vol. 52(6), pages 961-984, December.
    7. Swann, G. M. Peter, 2002. "The functional form of network effects," Information Economics and Policy, Elsevier, vol. 14(3), pages 417-429, September.
    8. Chen, Ava & Feamster, Nick & Calandro, Enrico, 2017. "Exploring the walled garden theory: An empirical framework to assess pricing effects on mobile data usage," Telecommunications Policy, Elsevier, vol. 41(7), pages 587-599.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dax Enshan Koh & Kaavya Kumar & Siong Thye Goh, 2024. "Quantum Volunteer's Dilemma," Papers 2409.05708, arXiv.org.
    2. Kopányi-Peuker, Anita, 2019. "Yes, I’ll do it: A large-scale experiment on the volunteer’s dilemma," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 80(C), pages 211-218.
    3. Yixuan Shi, 2022. "Dynamic Volunteer's Dilemma with Procrastinators," Working Papers tax-mpg-rps-2022-17, Max Planck Institute for Tax Law and Public Finance.
    4. Ayse Gül Mermer & Sander Onderstal & Joep Sonnemans, "undated". "Can Communication Mitigate Strategic Delays in Investment Timing?," Tinbergen Institute Discussion Papers 23-033/I, Tinbergen Institute.
    5. Campos-Mercade, Pol, 2021. "The volunteer’s dilemma explains the bystander effect," Journal of Economic Behavior & Organization, Elsevier, vol. 186(C), pages 646-661.
    6. Kloosterman, Andrew & Mago, Shakun, 2023. "The infinitely repeated volunteer's dilemma: An experimental study," Games and Economic Behavior, Elsevier, vol. 142(C), pages 812-832.
    7. Wang, Tse-Min & Heine, Florian & van Witteloostuijn, Arjen, 2023. "Pro-social risk-taking and intergroup conflict: A volunteer's dilemma experiment," Games and Economic Behavior, Elsevier, vol. 140(C), pages 363-379.
    8. Shakun D. Mago & Jennifer Pate, 2023. "Greed and fear: Competitive and charitable priming in a threshold volunteer's dilemma," Economic Inquiry, Western Economic Association International, vol. 61(1), pages 138-161, January.
    9. Gerpott, Torsten J., 2018. "Zero-rating arrangements of mobile Internet access service providers – An analysis of main factors shaping the need for regulatory interventions," Telecommunications Policy, Elsevier, vol. 42(6), pages 489-500.
    10. Doğan, Pınar, 2020. "Gender differences in volunteer’s dilemma: Evidence from teamwork among graduate students," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 84(C).
    11. Bergstrom, Ted & Garratt, Rodney & Leo, Greg, 2019. "Let me, or let George? Motives of competing altruists," Games and Economic Behavior, Elsevier, vol. 118(C), pages 269-283.
    12. Brishti Guha, 2020. "Revisiting the volunteer's dilemma: group size and public good provision in the presence of some ambiguity aversion," Economics Bulletin, AccessEcon, vol. 40(2), pages 1308-1318.
    13. Friedel Bolle & Philipp E. Otto, 2022. "The flip side of power," Public Choice, Springer, vol. 190(1), pages 75-92, January.
    14. Campos-Mercade, Pol, 2022. "When are groups less moral than individuals?," Games and Economic Behavior, Elsevier, vol. 134(C), pages 20-36.
    15. Matteo Cinelli & Giovanna Ferraro & Antonio Iovanella, 2022. "Connections matter: a proxy measure for evaluating network membership with an application to the Seventh Research Framework Programme," Scientometrics, Springer;Akadémiai Kiadó, vol. 127(7), pages 3959-3976, July.
    16. Frédéric Koessler & Marieke Pahlke, 2023. "Feedback Design in Strategic-Form Games with Ambiguity Averse Players," PSE Working Papers halshs-04039083, HAL.
    17. Florian Morath, 2013. "Volunteering and the strategic value of ignorance," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 41(1), pages 99-131, June.
    18. Karacuka, Mehmet & Çatık, A. Nazif & Haucap, Justus, 2013. "Consumer choice and local network effects in mobile telecommunications in Turkey," Telecommunications Policy, Elsevier, vol. 37(4), pages 334-344.
    19. Corrocher, Nicoletta & Zirulia, Lorenzo, 0. "Me and you and everyone we know: An empirical analysis of local network effects in mobile communications," Telecommunications Policy, Elsevier, vol. 33(1-2), pages 68-79, February.
    20. Brünner, Tobias & Reiner, Jochen & Natter, Martin & Skiera, Bernd, 2019. "Prospect theory in a dynamic game: Theory and evidence from online pay-per-bid auctions," Journal of Economic Behavior & Organization, Elsevier, vol. 164(C), pages 215-234.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:telsys:v:71:y:2019:i:1:d:10.1007_s11235-018-0504-7. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.