Competition among providers in loss networks

Communication networks are becoming ubiquitous and more and more competitive among revenue-maximizing providers, operating on potentially different technologies. In this paper, we propose to analyze thanks to game theory the competition of providers playing with access prices and fighting for customers. Considering a slotted-time model, the part of demand exceeding capacity is lost and has to be resent. We consider an access price for submitted packets, thus inducing a congestion pricing through losses. Customers therefore choose the provider with the cheapest average price per correctly transmitted unit of traffic.