Event Title

Duopoly Competition in Advertising-Sponsored Wi-Fi Provision

Advisor(s)

Haoran Yu, Northwestern University

Randall A. Berry, Northwestern University

Ermin Wei, Northwestern University

Location

Room A123

Start Date

26-4-2019 10:25 AM

End Date

26-4-2019 10:40 AM

Abstract

It has been increasingly popular for venues (e.g., restaurants) to collaborate with advertisers on the provision of public Wi-Fi services. The venues’ visitors can watch the advertisers’ ads in exchange for free Wi-Fi access, and the venue owners charge the advertisers for the ad display. In this work, we consider competition in advertising-sponsored Wi-Fi provision. Two venue owners with overlapping coverage compete for users and further sell the ad slots generated by the users to an advertiser. We model the strategic interactions among the venue owners, advertiser, and users as a three-stage game, and analyze the game equilibrium. Our results show that the venue owners’ advertising densities affect their market shares as well as the advertiser’s overall payment.

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Apr 26th, 10:25 AM Apr 26th, 10:40 AM

Duopoly Competition in Advertising-Sponsored Wi-Fi Provision

Room A123

It has been increasingly popular for venues (e.g., restaurants) to collaborate with advertisers on the provision of public Wi-Fi services. The venues’ visitors can watch the advertisers’ ads in exchange for free Wi-Fi access, and the venue owners charge the advertisers for the ad display. In this work, we consider competition in advertising-sponsored Wi-Fi provision. Two venue owners with overlapping coverage compete for users and further sell the ad slots generated by the users to an advertiser. We model the strategic interactions among the venue owners, advertiser, and users as a three-stage game, and analyze the game equilibrium. Our results show that the venue owners’ advertising densities affect their market shares as well as the advertiser’s overall payment.