Responsive pricing model for partially elastic users

In this paper we presented a model for implementation of responsive pricing scheme in next generation networks. We developed the algorithm based on Stackelberg game. The two game participants are partially elastic users competing for the bandwidth and the service provider adjusting the bandwidth price to maximize its revenue. The trade-off between users' satisfaction with the quality of service and the price is modelled as a discrete utility function. We founded Stackelberg equilibrium for that case.