Study on Supervision Mechanism in Mobile Value-added Market Based on Stackelberg Game Theory

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Author(s)

Di ZHAO 1,* Chuanliang JIA 2

1. International School Beijing University of Posts and Telecommunications Beijing 102209, China

2. School of Management Science and Engineering, Central University of Finance and Economics, Beijing 100081, China

* Corresponding author.

DOI: https://doi.org/10.5815/ijcnis.2011.03.05

Received: 21 Sep. 2010 / Revised: 13 Nov. 2010 / Accepted: 5 Jan. 2011 / Published: 8 Apr. 2011

Index Terms

Mobile value-added market, Supervision strategies, Game theory

Abstract

Since powerful supervision on the mobile valueadded services is lacking nowadays, the mobile market goes into a tendency of being rather chaotic. This research will analyze the behavior of both the service providers and mobile operators, with game theory model to be established. Moreover, the Nash Equilibrium will also be considered which shows that the costs and extent of the mobile operator’s supervision besides the penalty for the service provider’s being caught will definitely influence the probability for service providers to violate the rules. On the other hand, the proportion of illegal gains shared by mobile operators and the penalty degree for service providers may be the main factors that affect the mobile operator’s supervision choices. At last suggestions are made on the service provider’s strategic choices.

Cite This Paper

Di ZHAO, Chuanliang JIA, "Study on Supervision Mechanism in Mobile Value-added Market Based on Stackelberg Game Theory", International Journal of Computer Network and Information Security(IJCNIS), vol.3, no.3, pp.34-40, 2011. DOI:10.5815/ijcnis.2011.03.05

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