Analysis of internet pricing under two ISPs competition with game theory

摘要

We analyze competition between two Internet service providers (ISPs). Gibbens at el. have developed the PMP model and proposed the model for two ISPs competition by using game theory, however, they have made many assumptions some of which hardly capture realistic situations. In this paper, we relax the restriction that users must join the ISP, and introduce opt-out strategy for users. Our results show that Nash equilibrium depends on three factors; user's benefit from using Internet, TSP's network capacity and the number of users in market.