Internal Telephone Billing Rates—A Novel Application of Non-Atomic Game Theory

Abstract

We consider the problem of determining rates for a situation in which services are purchased in bulk but have to be paid for by a large number of small users. The desired rates must be “fair” and they must cover all costs. The problem is formulated as a non-atomic game and solved by using the value of the game. In addition to the general problem, we present a detailed actual case, together with computational methods and results.