Rotterdam School of Management (RSM) Erasmus University, Erasmus Research Institute of Management (ERIM)
This paper introduces a conceptual framework and a computational model for individual tariffs for mobile communication services. The purpose is to provide guidance for implementation by communication service suppliers or user groups alike. The paper first examines the sociological and economic incentives for personalized services and individual tariffs. Then it introduces a framework for individual tariffs which is centered on user and supplier behaviours. The user, instead of being fully rational, has "bounded rationality" and his behaviours are subject to economic constraints and influenced by social needs. The supplier can belong to different types of entities such as firms and communities; each has his own goals which lead to different behaviors. Individual tariffs are decided through interactions between the user and the supplier and can be analyzed in a structured way using game theory. A numerical case in mobile music training is developed to illustrate the concepts.