A heuristic approach to revenue maximisation in a competitive bandwidth-on-demand wireless market

This paper deals with a dual approach to understand pricing when wireless providers attempt to maximize their revenue in a competitive market, and network resources are sold on-demand at the time of request. Without any need for a preexisting contractual relationship with any of the providers users can submit requests for bandwidth to all available wireless networks, which in return announce their price for the requested resource. Users select the offer which gives them the highest net utility. The duality of our approach is reflected in the use of a game-theoretic model, which describes a game of incomplete information between two providers, and a heuristic that, taking into account technological constraints such as capacity and cell power, maximises the revenue of each provider. We make use of a simulation application to implement the heuristic solution and discuss the results obtained from extensive experimentation.