Stackelberg Game Modeling of Pricing for Mobile Virtual Network Operators

With rapid development of new network technologies, demands of network users grow dramatically. Primary mobile network operators (POs) cannot meet the demands of users. Therefore, secondary mobile virtual network operators (SOs) emerge to alleviate pressure on the network market. Obviously, the competition becomes more serious, for users have more choices for operators based on their requirements. Because all operators want to get their maximum profits, the main research of this paper is to obtain the maximum profits for one PO and one SO through pricing which uses Stackelberg leader-follower game. We have considered the changes of users’ demands, got the real-time equilibrium pricing point, and finally proved the correctness of our method.