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The Competition Between Internet Service Qualities From A Difference Game Viewpoint

Author

Listed:
  • JOEL BLOT

    (Laboratory SAMM EA 4543, University Paris 1, Panthéon-Sorbonne, 90 rue de Tolbiac, 75013 Paris, France)

  • NAILA HAYEK

    (ERMES EA 4441, University Paris 2, Panthéon-Assas, 12 Place du Panthéon, 75005 Paris, France)

  • FERHAN PEKERGIN

    (LIPN UMR 7030, University Paris Nord, 99 Avenue Jean-Baptiste Clément, 93430 Villetaneuse, France)

  • NIHAL PEKERGIN

    (LACL EA 4213, University Paris-Est Créteil, 61 Avenue du Général de Gaulle, 94010 Créteil, France)

Abstract

We treat the competition between two Internet Service Providers which are distinguished by the Quality of Services that they propose. We model this competition by means of an infinite-horizon discrete-time differential game. The dynamical modeling is due to the presence of investments of the firms. We solve the problem by using several Pontryagin principles for the optimal control problems associated to this differential game. We obtain the existence and the uniqueness of a Markov–Nash equilibrium of this differential game.

Suggested Citation

  • Joel Blot & Naila Hayek & Ferhan Pekergin & Nihal Pekergin, 2012. "The Competition Between Internet Service Qualities From A Difference Game Viewpoint," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 14(01), pages 1-36.
    • Handle: RePEc:wsi:igtrxx:v:14:y:2012:i:01:n:s0219198912500016
    DOI: 10.1142/S0219198912500016
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    References listed on IDEAS

    as
    1. Dockner,Engelbert J. & Jorgensen,Steffen & Long,Ngo Van & Sorger,Gerhard, 2000. "Differential Games in Economics and Management Science," Cambridge Books, Cambridge University Press, number 9780521637329, October.
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    More about this item

    Keywords

    Internet pricing; difference games; Pontryagin principle; 49N90; 93C55; 90B10; 93C95;
    All these keywords.

    JEL classification:

    • B4 - Schools of Economic Thought and Methodology - - Economic Methodology
    • C0 - Mathematical and Quantitative Methods - - General
    • C6 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling
    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
    • D5 - Microeconomics - - General Equilibrium and Disequilibrium
    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • M2 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics

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