Price Competition for Data Communication Service with Heterogeneous QoS Requirements in Free Market

摘要

With the development of information technology, data communication service has been a key issue in modern business. The important task for data communication network is, ultimately, to determine an effective pricing strategy. However, pricing of service provider have been studied, but primarily pricing in a monopolistic setting. Thus, we construct a new pricing model which includes not only the price competition but also random demand to maximize the providers profit in free market. Finally, the results show that this method is an effective method for determining the optimal price strategy in free market.