Predation Blocking Strategy in Presence of Fraudulent Incumbent Service Provider

In cellular network, it is desirable to have more mobile carriers for the sake of fare pricing of network service. We assume that right to allocate bandwidth is exclusive to the Government. Government wants to maintain fair competition in the market to avoid monopoly by more powerful service provider. We consider the case where an existing dominant service provider actively tries to prevent another competitor from entering into market. The dominant service provider have larger revenue than its competitor. If the incumbent service provider can hide it's true financial data from the audit process of the Government, it can manipulate the system to successfully thwart the new competition. In this work we have shown that, Government can sell bandwidth in multiple stages and by employing proper strategy, can nullify the incumbent SP's incentive for corruption.