5G Price Competition with Social Equilibrium Optimality for Social Networks

Abstract

Due to the leaps of progress in the 5G telecommunication industry, commodity pricing and consumer choice are frequently subject to change and competition in the search for optimal supply and demand. We here utilize a two-stage extensive game with complete information to mathematically describe user-supplier interactions on a social network. Firstly, an example of how to apply our model in a practical 5G wireless system is shown. Then we build a prototype that offers multiple services to users and provides different outputs for suppliers, where in addition, the user and supplier quantities are independently distributed. Secondly, we then consider a scenario in which we wish to maximize social welfare and determine if there is a perfect answer. We seek the subgame perfect Nash equilibrium and show that it exists, and also show that when both sides reach it, social welfare likewise reaches its maximum. Finally, we provide numerical results that corroborate the efficacy of our approach on a practical example in the 5G background.