Competition Between Wireless Service Providers: Pricing, Equilibrium and Efficiency

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As the communication network is in transition towards a commercial one controlled by Service Providers (SP), the present paper considers a pricing game in a communication market covered by several Wireless Access Points sharing the same spectrum and analyzes two business models: monopoly (APs controlled by one SP) and oligopoly (APs controlled by different SPs). The authors use a Stackelberg game to model the problem: SPs are the leader(s) and end users are the followers. They prove, under certain conditions, the existence and uniqueness of Nash equilibrium for both models and derive their expressions.