THE COMPETITION BETWEEN INTERNET SERVICE QUALITIES FROM A DIFFERENCE GAME VIEWPOINT

Joel Blot (), Naila Hayek (), Ferhan Pekergin () and Nihal Pekergin ()
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Joel Blot: Laboratory SAMM EA 4543, University Paris 1, Panthéon-Sorbonne, 90 rue de Tolbiac, 75013 Paris, France
Naila Hayek: ERMES EA 4441, University Paris 2, Panthéon-Assas, 12 Place du Panthéon, 75005 Paris, France
Ferhan Pekergin: LIPN UMR 7030, University Paris Nord, 99 Avenue Jean-Baptiste Clément, 93430 Villetaneuse, France
Nihal Pekergin: LACL EA 4213, University Paris-Est Créteil, 61 Avenue du Général de Gaulle, 94010 Créteil, France

International Game Theory Review (IGTR), 2012, vol. 14, issue 01, 1-36

Abstract: We treat the competition between two Internet Service Providers which are distinguished by the Quality of Services that they propose. We model this competition by means of an infinite-horizon discrete-time differential game. The dynamical modeling is due to the presence of investments of the firms. We solve the problem by using several Pontryagin principles for the optimal control problems associated to this differential game. We obtain the existence and the uniqueness of a Markov–Nash equilibrium of this differential game.

Keywords: Internet pricing; difference games; Pontryagin principle; 49N90; 93C55; 90B10; 93C95 (search for similar items in EconPapers)
JEL-codes: B4 C0 C6 C7 D5 D7 M2 (search for similar items in EconPapers)
Date: 2012
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DOI: 10.1142/S0219198912500016

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