Pricing and Resource Allocationfor Point-to-Point Telecommunication Services in a Competitive Market: Bilevel Optimization Approach

Michel Minoux 1 Guillaume Erbs 1 Mustapha Bouhtou
1 DECISION
LIP6 - Laboratoire d'Informatique de Paris 6
Abstract : With the deregulation of the telecommunication markets worldwide, network operators have to develop and offer new services to their clients in order to gain market share. In this context, yield management techniques can be used to optimize tariff computation and resource allocation so that an operator’s profit can be maximized. This paper presents a problem of revenue optimization and resource allocation for point-to-point services in a competitive market. The bilevel programming paradigm is used to model the clients’ behavior against the tariffs. Hence, the competition is explicitly taken into account. A mathematical model is introduced. In the process of solving the problem, we focus on exact solution methods using currently available commercial MIP solver. Numerical results are presented illustrating the computational complexity of this approach depending on the data used and the size of the network.
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Michel Minoux, Guillaume Erbs, Mustapha Bouhtou. Pricing and Resource Allocationfor Point-to-Point Telecommunication Services in a Competitive Market: Bilevel Optimization Approach. Telecommunication Planning : Innovations in Pricing, Network Design and Management, 33, Springer-Verlag, pp.1-16, 2006, Operations Research/Computer Science Interfaces Series, 978-0-387-29222-9. ⟨10.1007/0-387-29234-9_1⟩. ⟨hal-01420565⟩

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