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Abstract
The service providermay be not always focus on the short-termprofitin the process of supporting service to consumersbut always focus onmaximizing their market sharefrom the long-term perspective. Because the market share can improve their competitive strength as well as the quality of services, and also influence the profit in the future.Thus, the service provider need to consider developing their service so that they can improve the loyalty of their customers and attract more customers.
According to this situation, in this paper we analyze theequilibrium model ofinternet service in which the service provider will think of the market share and the transfer costs of consumers. The main contents and innovations are as follows:
Analyzing theequilibrium model ofinternet service based on multi-criteria condition in which the service provider not only consider maximizing the profit but also think of the method to get more market share. Describingthe optimal polices by using two-planning theory and thevariational inequalities, and obtaining the equilibrium condition.Byexample, analyze the multi-criteria problems ISP market share of the weight given to different rights on a service-oriented Internet balanced impact.
Analysis of consumer behavior, consumer research in transfer costs when changing service providers, the problems faced by consumers maximum utility theory, Hotelling model in market demand, and the theory of variational inequalities and two planning theory characterizes the optimal strategy of each layer, through a two-stage analysis of the presence of switching costs in consumer prices through the second ISP to earn high profits. By example, the analysis of the different switching costs and network equilibrium problem of compensation under the price, service providers in the development of strategies to provide a theoretical basis for setting the right price and the price of compensation, increase customer loyalt
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