Competition in data-based service provision: Nash equilibrium characterization

[EN] This paper analyzes the economic feasibility of a market for data-based services, which is a scenario envisioned in sectors that are adopting Internet of Things and/or Big Data technologies. A business model for the provision of a data-based service is proposed. In this model, service providers...

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Detalles Bibliográficos
Autores: Guijarro, Luis|||0000-0001-9774-9728, Pla, Vicent|||0000-0002-0894-9494, Vidal Catalá, José Ramón|||0000-0002-7137-1349, Naldi, Maurizio
Tipo de recurso: artículo
Fecha de publicación:2019
País:España
Institución:Universitat Politècnica de València (UPV)
Repositorio:RiuNet. Repositorio Institucional de la Universitat Politécnica de Valéncia
Idioma:inglés
OAI Identifier:oai:riunet.upv.es:10251/156655
Acceso en línea:https://riunet.upv.es/handle/10251/156655
Access Level:acceso abierto
Palabra clave:Game theory
Nash equilibrium
Service provision
Data providers
Competition
INGENIERIA TELEMATICA
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repository_id_str
spelling Competition in data-based service provision: Nash equilibrium characterizationGuijarro, Luis|||0000-0001-9774-9728Pla, Vicent|||0000-0002-0894-9494Vidal Catalá, José Ramón|||0000-0002-7137-1349Naldi, MaurizioGame theoryNash equilibriumService provisionData providersCompetitionINGENIERIA TELEMATICA[EN] This paper analyzes the economic feasibility of a market for data-based services, which is a scenario envisioned in sectors that are adopting Internet of Things and/or Big Data technologies. A business model for the provision of a data-based service is proposed. In this model, service providers build services from data that is collected and sold by data providers in a market, and provide services to final users. Service providers compete strategically against each other in the data market and in the service market. The strategic interaction between the service providers is analyzed by means of non-cooperative game theory. A thorough mathematical analysis of the Nash equilibria is carried out and existence and uniqueness conditions are proved and discussed. We conclude that if the sensitivity of users to the data-rate-to-price ratio is above the unity and the number of service provider does not exceed a given limit, a unique and meaningful equilibrium exists. We also conclude that the intensity of competition is beneficial for the users and detrimental for the service providers, while for the data providers, maximum surplus is obtained in an intermediate intensity of competition. Finally, an increase in the users¿ sensitivity to the data-rate-to-price ratio causes a shift on the surplus from both the service providers and data providers to the users.This work has been supported by the Spanish Ministry of Economy and Competitiveness through project TIN2013-47272-C2-1-R.ElsevierEscuela Técnica Superior de Ingeniería de TelecomunicaciónDepartamento de ComunicacionesMinisterio de Economía y EmpresaRepositorio Institucional de la Universitat Politècnica de València Riunet20192019-07-01journal articlehttp://purl.org/coar/resource_type/c_6501VoRhttp://purl.org/coar/version/c_970fb48d4fbd8a85info:eu-repo/semantics/articleapplication/pdfapplication/pdfhttps://riunet.upv.es/handle/10251/156655reponame:RiuNet. Repositorio Institucional de la Universitat Politécnica de Valénciainstname:Universitat Politècnica de València (UPV)InglésengMinisterio de Economía y Competitividad http://dx.doi.org/10.13039/501100003329 TIN2013-47272-C2-1-R PLATAFORMA DE SERVICIOS PARA CIUDADES INTELIGENTES CON REDES M2M DENSASopen accesshttp://purl.org/coar/access_right/c_abf2Reconocimiento - No comercial - Sin obra derivada (by-nc-nd) http://creativecommons.org/licenses/by-nc-nd/4.0/info:eu-repo/semantics/openAccessoai:riunet.upv.es:10251/1566552026-06-13T07:49:27Z
dc.title.none.fl_str_mv Competition in data-based service provision: Nash equilibrium characterization
title Competition in data-based service provision: Nash equilibrium characterization
spellingShingle Competition in data-based service provision: Nash equilibrium characterization
Guijarro, Luis|||0000-0001-9774-9728
Game theory
Nash equilibrium
Service provision
Data providers
Competition
INGENIERIA TELEMATICA
title_short Competition in data-based service provision: Nash equilibrium characterization
title_full Competition in data-based service provision: Nash equilibrium characterization
title_fullStr Competition in data-based service provision: Nash equilibrium characterization
title_full_unstemmed Competition in data-based service provision: Nash equilibrium characterization
title_sort Competition in data-based service provision: Nash equilibrium characterization
dc.creator.none.fl_str_mv Guijarro, Luis|||0000-0001-9774-9728
Pla, Vicent|||0000-0002-0894-9494
Vidal Catalá, José Ramón|||0000-0002-7137-1349
Naldi, Maurizio
author Guijarro, Luis|||0000-0001-9774-9728
author_facet Guijarro, Luis|||0000-0001-9774-9728
Pla, Vicent|||0000-0002-0894-9494
Vidal Catalá, José Ramón|||0000-0002-7137-1349
Naldi, Maurizio
author_role author
author2 Pla, Vicent|||0000-0002-0894-9494
Vidal Catalá, José Ramón|||0000-0002-7137-1349
Naldi, Maurizio
author2_role author
author
author
dc.contributor.none.fl_str_mv Escuela Técnica Superior de Ingeniería de Telecomunicación
Departamento de Comunicaciones
Ministerio de Economía y Empresa
Repositorio Institucional de la Universitat Politècnica de València Riunet
dc.subject.none.fl_str_mv Game theory
Nash equilibrium
Service provision
Data providers
Competition
INGENIERIA TELEMATICA
topic Game theory
Nash equilibrium
Service provision
Data providers
Competition
INGENIERIA TELEMATICA
description [EN] This paper analyzes the economic feasibility of a market for data-based services, which is a scenario envisioned in sectors that are adopting Internet of Things and/or Big Data technologies. A business model for the provision of a data-based service is proposed. In this model, service providers build services from data that is collected and sold by data providers in a market, and provide services to final users. Service providers compete strategically against each other in the data market and in the service market. The strategic interaction between the service providers is analyzed by means of non-cooperative game theory. A thorough mathematical analysis of the Nash equilibria is carried out and existence and uniqueness conditions are proved and discussed. We conclude that if the sensitivity of users to the data-rate-to-price ratio is above the unity and the number of service provider does not exceed a given limit, a unique and meaningful equilibrium exists. We also conclude that the intensity of competition is beneficial for the users and detrimental for the service providers, while for the data providers, maximum surplus is obtained in an intermediate intensity of competition. Finally, an increase in the users¿ sensitivity to the data-rate-to-price ratio causes a shift on the surplus from both the service providers and data providers to the users.
publishDate 2019
dc.date.none.fl_str_mv 2019
2019-07-01
dc.type.none.fl_str_mv journal article
http://purl.org/coar/resource_type/c_6501
VoR
http://purl.org/coar/version/c_970fb48d4fbd8a85
dc.type.openaire.fl_str_mv info:eu-repo/semantics/article
format article
dc.identifier.none.fl_str_mv https://riunet.upv.es/handle/10251/156655
url https://riunet.upv.es/handle/10251/156655
dc.language.none.fl_str_mv Inglés
eng
language_invalid_str_mv Inglés
language eng
dc.relation.none.fl_str_mv Ministerio de Economía y Competitividad http://dx.doi.org/10.13039/501100003329 TIN2013-47272-C2-1-R PLATAFORMA DE SERVICIOS PARA CIUDADES INTELIGENTES CON REDES M2M DENSAS
dc.rights.none.fl_str_mv open access
http://purl.org/coar/access_right/c_abf2
Reconocimiento - No comercial - Sin obra derivada (by-nc-nd)
http://creativecommons.org/licenses/by-nc-nd/4.0/
dc.rights.openaire.fl_str_mv info:eu-repo/semantics/openAccess
rights_invalid_str_mv open access
http://purl.org/coar/access_right/c_abf2
Reconocimiento - No comercial - Sin obra derivada (by-nc-nd)
http://creativecommons.org/licenses/by-nc-nd/4.0/
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
application/pdf
dc.publisher.none.fl_str_mv Elsevier
publisher.none.fl_str_mv Elsevier
dc.source.none.fl_str_mv reponame:RiuNet. Repositorio Institucional de la Universitat Politécnica de Valéncia
instname:Universitat Politècnica de València (UPV)
instname_str Universitat Politècnica de València (UPV)
reponame_str RiuNet. Repositorio Institucional de la Universitat Politécnica de Valéncia
collection RiuNet. Repositorio Institucional de la Universitat Politécnica de Valéncia
repository.name.fl_str_mv
repository.mail.fl_str_mv
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score 15,301603

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