Date Added: Jul 2012
The authors investigate profitability from secondary spectrum provision under unknown relationships between price charged for spectrum use and demand drawn at the given price. They show that profitability is governed by the applied admission policy and the price charged to secondary users. They explicitly identify a critical price (market entry price) such that if secondary demand is charged below that price, the licensee endures losses from spectrum provision, regardless of the applied admission policy. Furthermore, they show that an admission policy that admits secondary demand only when no channel is occupied is profitable for any price that exceeds the critical price.