Cooperation between global and local WiFi markets: Pricing, equilibrium and sharing

This paper analyzes the optimal pricing between the flat-rate pricing and usage-based pricing of the local and global WiFi provider. These markets are often managed by competing providers because of the increasing commercial interest in WiFi markets. In this case, the purpose of this paper is to explore the optimal pricing and sharing coefficient under the premise of cooperation between local provider and global provider. Three professors called Lingjie Duan, Jianwei Huang, and Biying Shou who use the cooperation game to model the problem, determine sharing coefficient and analyze the Pareto-efficiency in [4]. However, we assume that pricing of the local provider as a variable. After that it makes more sense that we formulate the optimal pricing and sharing coefficient which lead by cooperation game in the real life. Meanwhile, our work provide more choices for local provider, which offers more opportunities for local and global provider to cooperate. Finally, We prove the stability of Nash equilibrium for models and derive their expression under the certain condition. We demonstrate that provider has a better market position in different scenarios through an equilibrium analysis. © 2014 by Binary Information Press