Different Pricing Schemes for Communication Networks

Abstract

The service supplier is aware of the utility operate of every user (thus complete information), we discover that the entire value differentiation theme can do an over sized revenue gain (e.g., 50%) compared to no value differentiation, once the entire network resource is comparably restricted and therefore the high-willingness-to-pay users are minorities. However, the entire value differentiation theme could result in a high implementation quality. To trade off the revenue against the implementation complexity; we tend to any study the partial value differentiation theme and style a polynomial-time formula which will cipher the best partial differentiation costs. We tend to additionally think about the unfinished data case wherever the service supplier doesn't understand to that cluster every user belongs. The revenue maximization problem of service provider is considered and different pricing schemes to solve the above problem are implemented. The service provider can choose an apt pricing scheme subjected to limited resources, if he knows the utility function and identity of the user. The complete price differentiation can achieve a large revenue gain but has high implementation complexity. We show that it is still possible to realize price differentiation under this scenario, and provide the sufficient and necessary condition under which an incentive compatible differentiation scheme can achieve the same revenue as under complete information.