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Individual Tariffs for Mobile Services: Analysis of Operator Business and Risk Consequences

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  • Chen, H.
  • Pau, L-F.

Abstract

A design approach is offered for individual tariffs for mass customized mobile service products, whereby operators can determine their contract acceptance rules to guarantee with a set probability their minimum profit and risk levels. It uses realistic improvements to earlier reported negotiation algorithms [1], and a full operator operational model including infrastructure and content acquisition. Value at risk and profit are analyzed when a random user has consistent characteristics to a survey group, so that risk and profits are pooled. This analysis is necessary to give the supplier business guarantees to enter individual tariff agreements. A full numerical case is given for a class of mobile service.

Suggested Citation

  • Chen, H. & Pau, L-F., 2007. "Individual Tariffs for Mobile Services: Analysis of Operator Business and Risk Consequences," ERIM Report Series Research in Management ERS-2007-052-LIS, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    • Handle: RePEc:ems:eureri:10518
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    File URL: https://repub.eur.nl/pub/10518/ERS-2007-052-LIS.pdf
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    References listed on IDEAS

    as
    1. Thomas J. Linsmeier & Neil D. Pearson, 1996. "Risk Measurement: An Introduction to Value at Risk," Finance 9609004, University Library of Munich, Germany.
    2. Linsmeier, Thomas J. & Pearson, Neil D., 1996. "Risk measurement: an introduction to value at risk," ACE Reports 14796, University of Illinois at Urbana-Champaign, Department of Agricultural and Consumer Economics.
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    More about this item

    Keywords

    Individual tariffs; mobile communication services; risks;
    All these keywords.

    JEL classification:

    • L63 - Industrial Organization - - Industry Studies: Manufacturing - - - Microelectronics; Computers; Communications Equipment
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
    • M - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics

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