Mathematical models for mobile network member’s coordination through coverage development-based contract

Atieh Fander and Saeed Yaghoubi ()
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Atieh Fander: Iran University of Science and Technology
Saeed Yaghoubi: Iran University of Science and Technology

Flexible Services and Manufacturing Journal, 2022, vol. 34, issue 3, No 5, 670-708

Abstract: Abstract This study examines a mobile phone network in three models: (1) mobile network model: one mobile operator, one mobile phone manufacturer, and one mobile application developer, (2) mobile network model with application competition: one mobile operator, one mobile phone manufacturer, and two mobile application developers, (3) mobile network model with operator competition: two mobile operators, one mobile phone manufacturer, and one mobile application developers. A revenue sharing contract based on the coverage development is implemented between the operator and the mobile application developer in the first mode. Under this agreement, the operator will increase its share of the profits from the sale of the mobile application developer by increasing its coverage development rate. Some numerical examples for Iranian telecommunication companies are applied to examine the applicability of the proposed models. Finally, sensitivity analysis on the main parameters is analyzed in-depth to extract some managerial implications.

Keywords: Mobile phone network; Mobile operators; Mobile; Smartphone; Mobile applications; Revenue-sharing contract (search for similar items in EconPapers)
Date: 2022
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DOI: 10.1007/s10696-021-09421-y

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