Technology Choices and Pricing Policies in Wireless Networks

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Executive Summary

This paper studies the provision of a wireless network by a monopolistic provider who may be either benevolent (seeking to maximize social welfare) or selfish (seeking to maximize provider profit). The paper addresses the following questions: Under what circumstances is it feasible for a provider, either benevolent or selfish, to operate a network in such a way as to cover costs? How is the optimal behavior of a benev-olent provider different from the optimal behavior of a selfish provider, and how does this difference affect social welfare? And, most importantly, how does the Medium Access Control (MAC) technology influence the answers to these questions?

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