NDLI: Profit Maximization in Femtocell Service with Contract Design

Content Provider	IEEE Xplore Digital Library
Author	Chih-Yu Wang Hung-Yu Wei
Copyright Year	2002
Abstract	Most service providers offer an unlimited data service plan under a flat, fixed-rate contract to meet the huge demand. However, because service quality and user experience can vary dramatically in wireless communications, such a contract design is unable to provide equal service quality for all users, which greatly limits the profit potential of service providers. As a result, mobile industries look to femtocell technology to improve service quality and increase profit by attracting customers. Meanwhile, differentiated contracts for different types of users also show great potential for profit increase. In this paper, we investigate unlimited data service plans in terms of enhancements from both femtocell systems and differentiated contracts. The incentive compatibility (IC) issue in differentiated contract design is considered under the overlay macrocell-femtocell system in both split-spectrum and shared-spectrum models. The profits under optimal differentiated contracts, with and without the IC condition are compared to traditional flat fee contracts, and numerical results show that optimal differentiated contracts indeed generate more profits and serve more users.
Starting Page	1978
Ending Page	1988
Page Count	11
File Size	386400
File Format	PDF
ISSN	15361276
Volume Number	12
Issue Number	5
Language	English
Publisher	Institute of Electrical and Electronics Engineers, Inc. (IEEE)
Publisher Date	2013-05-01
Publisher Place	U.S.A.
Access Restriction	One Nation One Subscription (ONOS)
Rights Holder	Institute of Electrical and Electronics Engineers, Inc. (IEEE)
Subject Keyword	profit Femtocell contract design incentive compatible
Content Type	Text
Resource Type	Article
Subject	Applied Mathematics Electrical and Electronic Engineering Computer Science Applications

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