Pricing a Network Service in a Competitive Environment
B. Liau, J.L. Lutton, J. Kouatchou
A simplified formulation of the problem of selecting network services in a telephone network is proposed.
The optimal strategy of a customer has previously been studied and some results are recalled here.
A simplified tariff problem for one of the network service suppliers, namely the leased line operator, is investigated.
The problem is stated as a profit maximization problem and heuristic solutions are proposed derived from
methods already developed for optimization of circuit-switched network where revenue models are taken into account.
These methods are applied to solve test tariff problems for small telephone networks.