Research on the Associated Pricing Strategy in Telecom Industry

  • Xin Yue
  • Junjie Xu
  • Zhanhong Xin
Conference paper
Part of the Lecture Notes in Computer Science book series (LNCS, volume 5297)


Pricing strategy is one of the important issues in telecom industry for each player in the tri-game model. Being a conjunctive focus between users and service provider, carrier’s pricing strategy takes an outstanding role in telecom chain. By analyzing the relation among the players, a dynamic relation model between carrier and service provider was provided to solve this tri-game problem and its solutions were found. Furthermore, the stability of the solution was also investigated via isoclinic lines method. In addition, supposing the game model was disturbed because of carrier’s unexpected price adjustment, three responses of service provider were discussed with corresponding comments. By quantitative analysis, finally the work made a conclusion that, in order to keep a sustainable development in an uncertain market, service provider must endeavor to enhance the service’s attraction by constantly improving quality of its content.


Pricing strategy Telecom industry Isoclinal lines method Tri-game 


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.


  1. 1.
    Stoft, S.: Using game theory to study market power in simple networks. In: Singh, H. (ed.) IEEE Power Eng. Soc. Winter Meeting, New York, pp. 33–40 (1999)Google Scholar
  2. 2.
    Fudenberg, D., Tirole, J.: Game theory, 5th edn. MIT Press, Cambridge (1996)zbMATHGoogle Scholar
  3. 3.
    Nobel laureates’s perspectives on China’s economy, pp. 289–310. Economy Daily Press, Beijing (2006) Google Scholar
  4. 4.
    Li, J., Das, T.K.: Learning Nash equilibrium policies in average reward irreducible stochastic games. Working paper, Dept. of Industrial and Management Systems Engineering, Univ. South Florida, Tampa, FL (2003)Google Scholar
  5. 5.
    Lin, J.: A labor market game between enterprises and ELSA. Journal of Chongqing University of posts and telecommunications 04, 87–90 (2002)Google Scholar
  6. 6.
    Stanley, B., Paul, E.F., Madhav, V.R.: Performance measurement and design in supply chain. [J]. Management Science 47(1), 173–188 (2001)CrossRefzbMATHGoogle Scholar
  7. 7.
    Janjua, K.A., Khan, S.A., Noor, S.A.: Market analysis of competition in US local telephony. In: International Conference on Wireless Communications, Networking and Mobile Computing, WiCOM 2007, pp. 4970–4973 (2007)Google Scholar
  8. 8.
    Cunningham, L.B., Baldick, R., Baughman, M.L.: An empirical study of applied game theory: transmission constrained Cournot behavior. IEEE Trans. Power Syst. 17, 166–172 (2002)CrossRefGoogle Scholar
  9. 9.
    Tsai, H.-C., Chen, C.-M., Tzeng, G.-H.: The comparative productivity efficiency for global telecoms. International Journal of Production Economics 103(2), 509–526 (2006)CrossRefGoogle Scholar
  10. 10.
    Ruo-peng, L., Ting-jie, L.: Data service: characteristics, market structure, and the role of operator. The Journal of China Universities of Posts and Telecommunications 12(2), 35–39 (2005)Google Scholar

Copyright information

© Springer-Verlag Berlin Heidelberg 2008

Authors and Affiliations

  • Xin Yue
    • 1
  • Junjie Xu
    • 2
  • Zhanhong Xin
    • 1
  1. 1.School of Economics and ManagementBeijing University of Posts and TelecommunicationsBeijingChina
  2. 2.School of Economics and ManagementAnqing Teachers CollegeAnhuiChina

Personalised recommendations