Price dynamics in competitive agile spectrum access markets

We explore the price dynamics in a competitive market consisting of spectrum agile network service providers and users. Here, multiple self interested spectrum providers operating with different technologies and costs compete for potential customers. Different buyers or consumers may evaluate the same seller differently depending on their applications, operating technologies and locations. Two different buyer populations, the quality-sensitive and the price-sensitive are investigated, and the resulting collective price dynamics are studied using a combination of analysis and simulations. Various scenarios are considered regarding the nature and accuracy of information available to the sellers. A myopically optimal strategy is studied when full information is available, while a stochastic learning based strategy is considered when the information is limited. Cooperating groups may be formed among the sellers which will in-turn influence the group profit for those participants. Free riding phenomenon is observed under certain circumstances