@inproceedings{b1695c97fd5c49b296325723b929e8d8,
title = "Pricing under Information Asymmetry for a Large Population of Users",
abstract = "In this paper, we study optimal nonlinear pricing policy design for a monopolistic network service provider in the face of a large population of users. We assume that users have stochastic types. In [1], games with information symmetry have been considered; that is, users{\textquoteright} true types may be public information available to all parties, or each user{\textquoteright}s true type may be private information known only to that user. In this paper, we study the intermediate case with information asymmetry; that is, users{\textquoteright} true types are shared information among users, but are not disclosed to the service provider. The problem can be formulated as an incentive-design problem, and an ε-team optimal incentive (pricing) policy is obtained, which almost achieves Pareto optimality for the service provider. A comparative study between games with information symmetry and asymmetry are conducted as well to evaluate the service provider{\textquoteright}s game preferences.",
keywords = "Active pricing, Incentives, Incomplete information, Information asymmetry, Nonlinear pricing",
author = "Hongxia Shen and Tamer Ba{\c s}ar",
note = "In recent years, pricing has been increasingly studied for communication networks. Pricing can help to alleviate congestion. In this case, prices are essentially used as control signals from network service providers to users for them to adjust their usages of bandwidth (called flows here) accordingly. We can call this passive pricing, and the work in [2] ∗Hongxia Shen was with the Coordinated Science Laboratory, University of Illinois, Urbana, IL 61801, USA, when this work was done. This work was supported in part by the National Science Foundation (NSF) under Grant ANI-031976.; 1st International ICST Workshop on Game Theory for Communication Networks, GAMECOMM 2007 ; Conference date: 22-10-2007",
year = "2007",
doi = "10.4108/gamecomm.2007.2007",
language = "English (US)",
series = "ACM International Conference Proceeding Series",
publisher = "Association for Computing Machinery",
editor = "Rachid ElAzouzi",
booktitle = "GAMECOMM 2007 - 1st International ICST Workshop on Game Theory for Communication Networks",
address = "United States",
}