Game theoretic approach for coordination of telecommunication supply chain under network externality

In view of the booming of telecom, industry, vie study the coordination issues in a telecom, service supply chain with network externality. First, a mathematical model of the business model in a telecom, supply chain is established for one mobile provider and one service provider. Second, pricing and profit sharing mechanism between telecom, operators and service providers in the perspective of non-cooperative game and cooperative game are analysed respectively. Finally, numerical examples are given to support our model. Some good insights are presented for both agents in the telecom, service chain. The effects of system parameters on the pricing strategy and the profit allocation mechanism are also given.