Dynamic pricing of call rates: Bayesian approach

In this paper, we present different cases and their possible solutions in the telecommunications market by incorporating dynamically changing call rates over the channel depending upon the network congestion. Since dynamic pricing of call rates is beneficial from both the perspectives of subscribers and service providers, our solution can significantly help to adapt this pricing mechanism in real market scenario. In order to deploy this scheme, we have incorporated the competing network provider's strategy into the mechanism of deciding dynamic price. Establishment of Nash equilibrium with the competing network provider has stabilized our pricing mechanism. We implement dynamic pricing scheme against the static scheme for voice call rates.Our pricing scheme uses the opponent network provider's pricing mechanism into consideration.We establish Nash equilibrium with the opponent network provider's pricing strategy.We show how Bayesian approach is best suited for the studied market scenario.Our scheme even reduces call blocking probability to minimum level.