Demand responsive pricing competition of two MVNOs in dynamic spectrum access

In order to fully utilize the scarce wireless spectrum resources, many dynamic spectrum access approaches have emerged to enhance the spectrum efficiency in the spectrum market. From the economic point of view, in this paper we investigate the demand responsive pricing competition between two cognitive mobile virtual network operators (MVNOs) in a duopoly spectrum market and verify the pricing decisions as well as equilibrium. In addition, the secondary end user's heterogeneous preference over the rates that provided by the MVNOs is taken into account. Bertrand game theory is adopted to address the dynamic spectrum access problem. Through backward induction, a unique equilibrium as the solution of the game is obtained, which shows the stability of the spectrum market and the validity of the proposed approach.