Sponsoring Mobile Data: Analyzing the Impact on Internet Stakeholders - 2018


As demand for mobile information will increase, end users increasingly would like to pay additional for consuming data. Sponsored information is a new pricing model that permits content suppliers (CPs) to subsidize some of this value. It doubtless offers edges to multiple Internet stakeholders: users can fancy lower knowledge costs, CPs will attract more users by subsidizing their information access, and Internet service suppliers (ISPs) can produce new revenue streams by charging CPs for sponsored data. But, the distribution of those benefits between completely different users, CPs, and therefore the ISP remains unclear. Although issues have been raised that sponsored knowledge disproportionately advantages larger, less cost-sensitive CPs, little attention has been paid to analyzing sponsored data's impact on end users. This Project will so by initial formulating an analytical model of user, CP, and ISP interactions for heterogeneous users and CPs and deriving their optimal behaviors. We tend to then show that whereas all three parties can profit from sponsored information, sponsorship edges users more than CPs. These disproportionate edges are more pronounced for more price-sensitive users when they receive sponsorship from less price-sensitive CPs, indicating that sponsored knowledge might help to bridge the digital divide between users who will afford the price of mobile knowledge and those that cannot. We then show that sponsorship disproportionately benefits less price-sensitive CPs and a lot of value-sensitive users, exacerbating disparities among CPs however reducing disparities among users. We tend to finally illustrate these results through numerical simulations with knowledge from a commercial pricing trial.

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