Markets for Intermittent Service Using Intermittent Spectrum
摘要
In this paper, we develop a Cournot competition model to analyze a competitive wireless communications market where service providers (SPs) utilize both proprietary bandwidth—exclusively owned and consistently available—and intermittent bandwidth, which becomes available sporadically. Previous studies have considered such a setting where SPs offer a non-intermittent service, meaning that users must be served at all times. Here, we instead consider SPs that offer an intermittent service, where users can tolerate delays in service but at a cost. Our model captures how the availability of intermittent bandwidth affects the service latency experienced by users, the strategies adopted by SPs, and their resulting revenues. Through theoretical analysis, we find that intermittent bandwidth can significantly impact market dynamics, lowering barriers to entry and enabling new entrants to compete effectively against established incumbents. This increased competition can lead to favorable outcomes for consumers, such as lower prices and improved service quality. We support our findings with simulations that illustrate how intermittent bandwidth can be used and its effects on the market. Our study highlights the strategic importance of intermittent bandwidth in shaping competitive markets and offers insights into how it can be leveraged to enhance efficiency and innovation in the telecommunications industry.