Analysis of dynamic pricing methods for telecommunication services in conditions of limited competition

It is shown that economic structures that are present on the telecommunications market require special approaches for analysis of the market relationship between them. The telecommunication market is subject to a limited (imperfect) competition. The prerequisites are that a significant share of the market is occupied by two or three companies, and there are barriers to entry in the telecommunications industry for new competitors, characterized by the deviation from the market equilibrium. As experience shows, limited number of large companies leads to a cartel collusion which is very difficult to prove that allows this cartel to maintain high prices for services without losing customers. The aim of this work is to build a model of dynamic pricing in the telecommunications market with limited competition. To achieve the goal, a comprehensive approach consisted of methods of economic-mathematical modeling and queuing theory was used. Taking into account limited competition in the telecommunications market and maximizing the profit of each company in the framework of the constructed model, equilibrium tariffs were found, as well as the volume of provided services. In addition, the optimal state strategy for creating a competitive environment in the telecommunications industry was determined, and the dynamics of the transition to the market of perfect competition was analyzed. © 2017 CEUR-WS. All rights reserved.