When Virtual Network Operator Meets E-Commerce Platform: Advertising via Data Reward

Qi Cheng, Hangguan Shan, Weihua Zhuang, Tony Q.S. Quek, Zhaoyang Zhang

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

In China, some e-commerce platform (EP) companies such as Alibaba and JD have been now allowed to partner with network operators (NOs) to act as virtual network operators (VNOs) to provide mobile data services for mobile users (MUs). However, it is a question worth researching on how to generate more profits for all network players after EP companies being VNOs through appropriate integration of the VNO business and the companies' own e-commerce business. To address this issue, in this work we propose a novel incentive mechanism for advertising via mobile data reward, and model it as a three-stage Stackelberg game. In Stage I, the NO decides the price of mobile data for the VNO; in Stage II, the VNO decides its data plan fee for MUs and the ad price for e-commerce merchants (EMs); in Stage III, the MUs make their own decisions on the data plan subscription and the number of ads to be watched, while the EMs decide the number of ad slots they buy from the EP. We obtain the closed-form optimal solution of the Nash equilibrium by backward induction. Simulation results show the impact of the system parameters on the utilities of game players and social welfare, and reveal that the solution can indeed lead to a quadri-win outcome in some cases. At the same time, we summarize some insights that have economic guidance.

Original languageEnglish
Title of host publication2021 IEEE/ACM 29th International Symposium on Quality of Service, IWQOS 2021
PublisherInstitute of Electrical and Electronics Engineers Inc.
ISBN (Electronic)9781665414944
DOIs
Publication statusPublished - 2021 Jun 25
Event29th IEEE/ACM International Symposium on Quality of Service, IWQOS 2021 - Virtual, Tokyo, Japan
Duration: 2021 Jun 252021 Jun 28

Publication series

Name2021 IEEE/ACM 29th International Symposium on Quality of Service, IWQOS 2021

Conference

Conference29th IEEE/ACM International Symposium on Quality of Service, IWQOS 2021
Country/TerritoryJapan
CityVirtual, Tokyo
Period21-06-2521-06-28

All Science Journal Classification (ASJC) codes

  • Computer Networks and Communications
  • Information Systems and Management
  • Safety, Risk, Reliability and Quality

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