A duopoly model with heterogeneous congestion-sensitive customers

M.R.H. Mandjes, Judith B. Timmer

Research output: Book/ReportReportProfessional

60 Downloads (Pure)

Abstract

This paper analyzes a model with multiple firms (providers), and two classes of customers. These customers classes are characterized by their attitude towards `congestion' (caused by other customers using the same resources); a firm is selected on the basis of both the prices charged by the firms, and the `congestion levels'. The model can be represented by a two-stage game: in the first providers set their prices, whereas in the second the customers choose the provider (or to not use any service at all) for given prices. We explicitly allow the providers to split their resources, in order to serve more than just one market segment. This enables us to further analyze the Paris metro pricing ({\sc Pmp}) proposal for service differentiation in the Internet.
Original languageUndefined
Place of PublicationEnschede
PublisherUniversity of Twente, Department of Applied Mathematics
Number of pages29
Publication statusPublished - 2003

Publication series

NameMemorandum Faculty of Mathematical Sciences
PublisherUniversity of Twente, Department of Applied Mathematics
No.1680
ISSN (Print)0169-2690

Keywords

  • MSC-90B18
  • MSC-91A10
  • MSC-91A20
  • METIS-212728
  • MSC-60K30
  • IR-65865
  • EWI-3500
  • MSC-60K25

Cite this

Mandjes, M. R. H., & Timmer, J. B. (2003). A duopoly model with heterogeneous congestion-sensitive customers. (Memorandum Faculty of Mathematical Sciences; No. 1680). Enschede: University of Twente, Department of Applied Mathematics.