Investing and price competition for multiple bands of unlicensed spectrum

Chang Liu, Randall A. Berry

Research output: Chapter in Book/Report/Conference proceedingConference contribution

6 Scopus citations

Abstract

Motivated in part by the success of WiFi, there has been much interest in opening up new 'prime' bands of spectrum for unlicensed use. Such bands can lower the cost for new wireless service providers to enter a market. The increased competition could in turn improve economic welfare. However, the openness of such spectrum can also lead to it becoming over congested, which in turn could deter investment. Indeed, a recent paper shows that due to the risk of congestion, only a single service provider may invest in a given unlicensed band and charge monopoly prices. However, that paper considers only a single band of unlicensed spectrum. In this paper, we consider investment and competition when there are multiple unlicensed bands available. In such a setting, each service provider could either invest in a single band or spread its investment over multiple bands. We consider a two-stage game for such a setting, in which firms first decide investment levels and second compete for customers by announcing prices for their service. The equilibria and resulting welfare of this game are characterized.

Original languageEnglish (US)
Title of host publication2015 IEEE Conference on Computer Communications Workshops, INFOCOM WKSHPS 2015
PublisherInstitute of Electrical and Electronics Engineers Inc.
Pages522-527
Number of pages6
ISBN (Electronic)9781467371315
DOIs
StatePublished - Aug 4 2015
EventIEEE Conference on Computer Communications Workshops, INFOCOM WKSHPS 2015 - Hong Kong, Hong Kong
Duration: Apr 26 2015May 1 2015

Publication series

NameProceedings - IEEE INFOCOM
Volume2015-August
ISSN (Print)0743-166X

Other

OtherIEEE Conference on Computer Communications Workshops, INFOCOM WKSHPS 2015
CountryHong Kong
CityHong Kong
Period4/26/155/1/15

ASJC Scopus subject areas

  • Computer Science(all)
  • Electrical and Electronic Engineering

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