When Network Effect Meets Congestion Effect

Xiaowen Gong, Lingjie Duan, Xu Chen
2015 Proceedings of the 16th ACM International Symposium on Mobile Ad Hoc Networking and Computing - MobiHoc '15  
The recent development of social services tightens wireless users' social relationships and encourages them to generate more data traffic under network effect. This boosts the demand for wireless services yet may challenge the limited wireless capacity. To fully exploit this opportunity, we study mobile users' data usage behaviors by jointly considering the network effect based on their social relationships in the social domain and the congestion effect in the physical wireless domain.
more » ... ly, we develop a Stackelberg game for problem formulation: In Stage I, a wireless provider first decides the data pricing to all users to maximize its revenue, and then in Stage II users observe the price and decide data usage subject to mutual interactions under both network and congestion effects. We analyze the two-stage game using backward induction. For Stage II, we first show the existence and uniqueness of a user demand equilibrium (UDE). Then we propose a distributed update algorithm for users to reach the UDE. Furthermore, we investigate the impacts of different parameters on the UDE. For Stage I, we develop an optimal pricing algorithm to maximize the wireless provider's revenue. We evaluate the performance of our proposed algorithms by numerical studies using real data, and thereby draw useful engineering insights for the operation of wireless providers.
doi:10.1145/2746285.2746315 dblp:conf/mobihoc/GongDC15 fatcat:o4337znturg7jfrczjrq7vqyli