An optimal strategy of 3G mobile handset distribution by 3-person game

An optimal strategy of 3G mobile handset distribution by 3-person game

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Article ID: iaor20103048
Volume: 34
Issue: 4
Start Page Number: 571
End Page Number: 580
Publication Date: Jun 2009
Journal: Journal of the Korean O.R. and MS Society
Authors: ,
Keywords: game theory
Abstract:

The USIM (universal subscriber identity module)-unlock introducing in July 1, 2008 might be led to a significant change that mobile service provider's dominance is considerably dispersed to the handset manufacturer and distributor. Under USIM-unlock environment, mobile service provider, handset manufacturer, and distributor have to make their decisions on their handset distribution channel strategies: the closed distribution channel strategy or the open distribution channel strategy. The change of distribution channel strategy between members in distribution channel can be understood as a matter of strategy choice, and we have developed a theoretical model and analyzed how to make a decision for the member's optimal distribution strategy based on 3-person game model between members of mobile phone distribution channel, under both of ‘1 subscriber-1 handset’ and ‘1 subscriber-multiple handset’ assumptions.

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