Evaluating the economic impact of cognitive radio with a three-player oligopoly model

Cognitive radio provides an opportunity for more efficient use of spectrum and features that improve and increase services in mobile business. This paper analyzes the economic impact of cognitive radio with a three-player oligopoly model. The three players represent the three markets of the industry: devices, connectivity and services. We examine how the new technology affects the markets, and how the changes in one market affect the other markets. With the model, it is possible to estimate the players´ utilities under different parameters and scenarios. We also present a method to estimate the parameter changes in the model from the technological improvements of cognitive radio. The model can be extended to incorporate more specific issues like the running out of spectrum and the effects of coalitions, which are studied in this paper.