Mobile data trading: A behavioral economics perspective

Junlin Yu, Man Hon Cheung, Jianwei Huang, H. Vincent Poor

Research output: Chapter in Book/Report/Conference proceedingConference contribution

20 Scopus citations

Abstract

Motivated by the recently launched 2CM data trading platform of China Mobile Hong Kong, we study the optimal user mobile data trading problem under the future demand uncertainty. We consider a brokerage-based market, where sellers and buyers propose their selling and buying prices and quantities to the trading platform, respectively. The platform acts as a broker, which facilitates the trade by matching the supply and demand. To understand users' realistic trading behaviors, we use prospect theory (PT) from behavioral economics in the modeling, which leads to a challenging non-convex optimization problem. Nevertheless, we are able to determine the unique optimal solution in closed-form, by utilizing the unimodal structure of the objective function. When comparing with the benchmark expected utility theory (EUT), we show that a PT user with a low reference point is more willing to buy mobile data. Moreover, when the probability of high demand is low, comparing with an EUT user, a PT user is more willing to buy mobile data due to the probability distortion.

Original languageEnglish (US)
Title of host publication2015 13th International Symposium on Modeling and Optimization in Mobile, Ad Hoc, and Wireless Networks, WiOpt 2015
PublisherInstitute of Electrical and Electronics Engineers Inc.
Pages363-370
Number of pages8
ISBN (Electronic)9783901882746
DOIs
StatePublished - Jul 6 2015
Event2015 13th International Symposium on Modeling and Optimization in Mobile, Ad Hoc, and Wireless Networks, WiOpt 2015 - Mumbai, India
Duration: May 25 2015May 29 2015

Publication series

Name2015 13th International Symposium on Modeling and Optimization in Mobile, Ad Hoc, and Wireless Networks, WiOpt 2015

Other

Other2015 13th International Symposium on Modeling and Optimization in Mobile, Ad Hoc, and Wireless Networks, WiOpt 2015
Country/TerritoryIndia
CityMumbai
Period5/25/155/29/15

All Science Journal Classification (ASJC) codes

  • Computer Networks and Communications
  • Control and Optimization
  • Modeling and Simulation

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