### Abstract

Original language | Undefined |
---|---|

Title of host publication | Internet And Network Economics (WINE 2008) |

Editors | C. Papadimitriou, S. Zhang |

Place of Publication | Berlin |

Publisher | Springer |

Pages | 362-373 |

Number of pages | 12 |

ISBN (Print) | 978-3-540-92184-4 |

DOIs | |

Publication status | Published - Dec 2008 |

Event | 4th International Workshop on Internet and Network Economics, WINE 2008: Internet And Network Economics (WINE 2008) - Shanghai, China, Shanghai, China Duration: 17 Dec 2008 → 20 Dec 2008 Conference number: 4 |

### Publication series

Name | Lecture Notes in Computer Science |
---|---|

Publisher | Springer Verlag |

Number | 2 |

Volume | 5385 |

ISSN (Print) | 0302-9743 |

ISSN (Electronic) | 1611-3349 |

### Conference

Conference | 4th International Workshop on Internet and Network Economics, WINE 2008 |
---|---|

Abbreviated title | WINE 2008 |

Country | China |

City | Shanghai |

Period | 17/12/08 → 20/12/08 |

Other | 17-20 Dec, 2008 |

### Keywords

- EWI-13418
- IR-62457
- METIS-254888

### Cite this

*Internet And Network Economics (WINE 2008)*(pp. 362-373). [10.1007/978-3-540-92185-1_42] (Lecture Notes in Computer Science; Vol. 5385, No. 2). Berlin: Springer. https://doi.org/10.1007/978-3-540-92185-1_42

}

*Internet And Network Economics (WINE 2008).*, 10.1007/978-3-540-92185-1_42, Lecture Notes in Computer Science, no. 2, vol. 5385, Springer, Berlin, pp. 362-373, 4th International Workshop on Internet and Network Economics, WINE 2008, Shanghai, China, 17/12/08. https://doi.org/10.1007/978-3-540-92185-1_42

**Algorithms for optimal price regulations.** / Grigoriev, Alexander; van Loon, Joyce; Uetz, Marc Jochen.

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution › Academic › peer-review

TY - GEN

T1 - Algorithms for optimal price regulations

AU - Grigoriev, Alexander

AU - van Loon, Joyce

AU - Uetz, Marc Jochen

N1 - 10.1007/978-3-540-92185-1_42

PY - 2008/12

Y1 - 2008/12

N2 - Since summer 2007, mobile phone users in the European Union (EU) are protected by a ceiling on the roaming tariff when calling or receiving a call abroad. We analyze the effects of this price regulative policy, and compare it to alternative implementations of price regulations. The problem is a three-level mathematical program: The EU determines the price regulative policy, the telephone operator sets profit-maximizing prices, and customers choose to accept or decline the operator’s offer. The first part of this paper contains a polynomial time algorithm to solve such a three-level program. The crucial idea is to partition the polyhedron of feasible price regulative parameters into a polynomial number of smaller polyhedra such that a certain mprimitive decision problem can be written as an LP on each of those. Then the problem can be solved by a combination of enumeration and linear programming. In the second part, we analyze more specifically an instance of this problem, namely the price regulation problem that the EU encounters. Using customer-data from a large telephone operator, we compare different price regulative policies with respect to their social welfare. On the basis of the specific social welfare function, we observe that other price regulative policies or different ceilings can improve the total social welfare.

AB - Since summer 2007, mobile phone users in the European Union (EU) are protected by a ceiling on the roaming tariff when calling or receiving a call abroad. We analyze the effects of this price regulative policy, and compare it to alternative implementations of price regulations. The problem is a three-level mathematical program: The EU determines the price regulative policy, the telephone operator sets profit-maximizing prices, and customers choose to accept or decline the operator’s offer. The first part of this paper contains a polynomial time algorithm to solve such a three-level program. The crucial idea is to partition the polyhedron of feasible price regulative parameters into a polynomial number of smaller polyhedra such that a certain mprimitive decision problem can be written as an LP on each of those. Then the problem can be solved by a combination of enumeration and linear programming. In the second part, we analyze more specifically an instance of this problem, namely the price regulation problem that the EU encounters. Using customer-data from a large telephone operator, we compare different price regulative policies with respect to their social welfare. On the basis of the specific social welfare function, we observe that other price regulative policies or different ceilings can improve the total social welfare.

KW - EWI-13418

KW - IR-62457

KW - METIS-254888

U2 - 10.1007/978-3-540-92185-1_42

DO - 10.1007/978-3-540-92185-1_42

M3 - Conference contribution

SN - 978-3-540-92184-4

T3 - Lecture Notes in Computer Science

SP - 362

EP - 373

BT - Internet And Network Economics (WINE 2008)

A2 - Papadimitriou, C.

A2 - Zhang, S.

PB - Springer

CY - Berlin

ER -