Cooperative and Non-cooperative WSPs in Dynamic Spectrum Leasing

In this paper, we study the interactions between two Secondary Wireless Service Providers (WSPs) in different situations: competitive and cooperative. WSPs acquire spectrum by leasing from spectrum broker and then sell spectrum to secondary users by providing services. Users follow Wardrop´s principle and choose WSPs with lowest perceived price which is associated with price and quality of service (QoS). WSPs and users play a three-stage game to maximize their own profits. Assume the information about the WSPs and users are complete, we analyze the extensive form game by backward induction. After comparing with cooperative WSPs, We find that competitive WSPs have little less efficiency but more effectiveness and reality.