A Game Theoretic Modeling and Analysis for Internet Access Market
In this paper, we study the local dial-up Internet access market using a game theoretic model. In particular, we consider the Nash equilibrium of the service providers and examine their behavior on investment and output level. We calibrate this model to fit the industry structure and data found i...
| Main Authors: | , , |
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| Language: | en_US |
| Published: |
2002
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| Subjects: | |
| Online Access: | http://hdl.handle.net/1721.1/1481 |
| _version_ | 1826210898849562624 |
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| author | Weiss, Martin Shin, Seung-Jae Correa, Hector |
| author_facet | Weiss, Martin Shin, Seung-Jae Correa, Hector |
| author_sort | Weiss, Martin |
| collection | MIT |
| description | In this paper, we study the local dial-up Internet access market using a game theoretic model. In
particular, we consider the Nash equilibrium of the service providers and examine their behavior
on investment and output level. We calibrate this model to fit the industry structure and data
found in rural markets. In the first part of the paper, we examine the Internet industry structure
and its characteristics. In the latter part of the paper, we create an abstract Cournot duopoly
model, in which real world cost and revenue projection will be used to find an Internet access
market equilibrium and its social welfare. These analyses allow us to explain the motivation for
the ISPs' behavior, such as over-subscription and under-investment. Finally, we will present an
analytical framework for the Internet industry policy maker. |
| first_indexed | 2024-09-23T14:57:13Z |
| id | mit-1721.1/1481 |
| institution | Massachusetts Institute of Technology |
| language | en_US |
| last_indexed | 2024-09-23T14:57:13Z |
| publishDate | 2002 |
| record_format | dspace |
| spelling | mit-1721.1/14812019-04-12T08:17:22Z A Game Theoretic Modeling and Analysis for Internet Access Market Weiss, Martin Shin, Seung-Jae Correa, Hector service providers Nash equilibrium Internet access market game theoretic model output level input level investment dial-up Internet In this paper, we study the local dial-up Internet access market using a game theoretic model. In particular, we consider the Nash equilibrium of the service providers and examine their behavior on investment and output level. We calibrate this model to fit the industry structure and data found in rural markets. In the first part of the paper, we examine the Internet industry structure and its characteristics. In the latter part of the paper, we create an abstract Cournot duopoly model, in which real world cost and revenue projection will be used to find an Internet access market equilibrium and its social welfare. These analyses allow us to explain the motivation for the ISPs' behavior, such as over-subscription and under-investment. Finally, we will present an analytical framework for the Internet industry policy maker. 2002-07-22T15:31:26Z 2002-07-22T15:31:26Z 2002-07-22T15:31:27Z http://hdl.handle.net/1721.1/1481 en_US ITS;14 256396 bytes application/pdf application/pdf |
| spellingShingle | service providers Nash equilibrium Internet access market game theoretic model output level input level investment dial-up Internet Weiss, Martin Shin, Seung-Jae Correa, Hector A Game Theoretic Modeling and Analysis for Internet Access Market |
| title | A Game Theoretic Modeling and Analysis for Internet Access Market |
| title_full | A Game Theoretic Modeling and Analysis for Internet Access Market |
| title_fullStr | A Game Theoretic Modeling and Analysis for Internet Access Market |
| title_full_unstemmed | A Game Theoretic Modeling and Analysis for Internet Access Market |
| title_short | A Game Theoretic Modeling and Analysis for Internet Access Market |
| title_sort | game theoretic modeling and analysis for internet access market |
| topic | service providers Nash equilibrium Internet access market game theoretic model output level input level investment dial-up Internet |
| url | http://hdl.handle.net/1721.1/1481 |
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