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Individual Tariffs for Mobile Communication Services

Author

Listed:
  • Chen, H.
  • Pau, L-F.

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.

Suggested Citation

  • Chen, H. & Pau, L-F., 2007. "Individual Tariffs for Mobile Communication Services," ERIM Report Series Research in Management ERS-2007-054-LIS, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    • Handle: RePEc:ems:eureri:10503
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    More about this item

    Keywords

    Individual tariffs; computational games; mobile communication services; risks;
    All these keywords.

    JEL classification:

    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • L63 - Industrial Organization - - Industry Studies: Manufacturing - - - Microelectronics; Computers; Communications Equipment
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
    • M - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics

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