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The Competition Between Internet Service Qualities From A Difference Game Viewpoint

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Author Info

  • 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)

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    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.

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    Bibliographic Info

    Article provided by World Scientific Publishing Co. Pte. Ltd. in its journal International Game Theory Review.

    Volume (Year): 14 (2012)
    Issue (Month): 01 ()
    Pages: 1250001-1-1250001-36

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    Handle: RePEc:wsi:igtrxx:v:14:y:2012:i:01:p:1250001-1-1250001-36

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    Related research

    Keywords: Internet pricing; difference games; Pontryagin principle; 49N90; 93C55; 90B10; 93C95;

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