Extending the stochastic programming framework for the modeling of several decision makers: pricing and competition in the telecommunication sector

Jan-Arild Audestad, Alexei Gaivoronski () and Adrian Werner

Annals of Operations Research, 2006, vol. 142, issue 1, 19-39

Abstract: We consider the case when part of the uncertainty faced by a decision maker is derived from actions of another independent actor who pursues her own aims. Each party sets its decisions in the next time period in response to the other party's policy. We model this situation by introducing some ideas from game theory, but unlike this theory we do not focus on equilibrium and related optimality notions. Instead, we follow the framework of stochastic programming and take the view of one of the decision makers. Our model is placed in a telecommunication environment with a network owner and operators without their own network facilities. We give an extension to a multiperiod model. Copyright Springer Science + Business Media, Inc. 2006

Keywords: Stochastic programming; Modeling of competition; Virtual operators; Pricing (search for similar items in EconPapers)
Date: 2006
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DOI: 10.1007/s10479-006-6159-x

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