While equilibrium analysis has been commonly used for network pricing under the assumption that user utility functions are precisely known, many researchers have criticized the validity of the assumption. In this paper, we propose a solution for bridging the gap between the existing theoretical work on optimal pricing and the unavailability of precise user utility information in real networks. In the proposed method, the service provider obtains increasingly more accurate estimates of user utility functions by iteratively changing the prices of service levels and observing the users' service-level choices under various prices. Our study's contribution is twofold. First, we have developed a general principle for estimating user utility functions. Especially, we present the utility estimation for dynamic user population. Second, we have developed a method for setting prices that can optimize the extraction of information about user utility functions. The extensive simulation results demonstrate the effectiveness of our method.
Bibliographical noteFunding Information:
This research was partially supported by the MKE (The Ministry of Knowledge Economy), Korea, under the ITRC (Information Technology Research Center) support program supervised by the IITA (Institute for Information Technology Advancement) (IITA-2008-C1090-0803-0004).
All Science Journal Classification (ASJC) codes
- Computer Science(all)