A Microeconomic Approach to Data Trading in User Provided Networks

In this paper, we consider a novel cellular network connection paradigm, known as user-provided network (UPN), where users share their connectivity with others. Motivated by the recently launched traded data plans, where Wireless Service Providers allow users to sell and buy leftover data capacities (caps) from each other, we have developed a dynamic pricing scheme for such a network. Optimal prices for the volume of data traded are derived from market equilibrium. The proposed pricing scheme provides a global data market reference price, trading price for local data markets, considering user connectivity requirements, and price recovery. An analysis of UPN based on microeconomics is presented to provide insights into how traffic dynamics affect data volume demand and supply and thus, trading prices. The stability of the market equilibrium is also analyzed. Numerical results show that our scheme incentivizes user participation in UPNs by dynamically adapting the price to data volume demand and supply, and also provides high returns to both buyers and sellers.