Multi-layer Game-Theoretical Analysis of Wireless Markets with Market Segmentation
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New larger and more diverse wireless markets have emerged. Modelling them can be challenging due to various business and network aspects. Existing models of wireless markets are either microscopic, focusing on a specific technical aspect (e.g., network topology) at a fine scale or macroscopic modelling wireless markets at a large-scale, e.g., considering homogeneous populations. In contrast to these approaches, this work develops a multi-layer game-theoretical framework, which allows providers to model users at multiple-level of detail by considering a different number of user sub-populations. It also models the mobility, traffic demand, and networks of providers. A population game using Logit dynamics models the user selection of the dataplan and provider, capturing the diversity in customer profile and relaxing the assumption about the user rationality. It analytically computes the equilibriums of users and providers and numerically evaluates the performance of the market as a function of the traffic demand, the number of available dataplans, and the knowledge about customer population. Significant benefits in revenue can be achieved by a provider when it integrates more detailed information about the user population. The number of disconnected users also decreases. Moreover the availability of several dataplans further enhances the gains. The stronger the provider, the more prominent the benefits. However the benefits diminish when all the providers model the customer population at the same degree of detail due to an increased competition. The analysis highlights the strategies of the providers depending on their capacity, level of knowledge about the customer population, and traffic conditions. It illustrates how a provider changes its strategy under different conditions, focusing potentially on different customer segments and also the pressure introduced by specific customer types.
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