| Summary: | 碩士 === 國立臺灣大學 === 工業工程學研究所 === 105 === With the popularity of smart devices and the convenience of the internet, global mobile data keeps growing. As network congestion occurs more frequently, users experience internet service with lower quality and start complaining of internet providers. Internet service provider will have higher reputation if service quality is improved, but the maintenance cost of network infrastructure will increase as well. However, content provider will gain more benefits without paying additional cost after infrastructure expansion. Therefore, internet service provider has no incentive to expand the scale of capacity. In this research, we consider a cost-sharing contract between internet service provider and content provider, and analyze the problem by backward induction. In basic model, content provider decides the subscription price of content after internet service provider decides the scale of capacity provided to users for connecting to the internet. This research considers different cooperation scenario, in which content provider and internet service provider are able to make different decisions, that is, the scale of capacity or the proportion of maintenance cost shared by content provider. Through numerical analysis, we show that internet service provider will have incentive to expand the scale of infrastructure capacity without sacrificing content provider’s utility through cost-sharing contract, and more users can experience internet service with better quality at the same time.
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