Business Model Specific Charging Mechanism in Cognitive Radio

Dynamic Spectrum Access allows the cognitive radio to use or share the spectrum in an opportunistic manner, which improves the efficiency of spectrum usage. In this research, we first present a theoretic framework and its process flow as a possible future scenario. Then we describe our empirical studies of price formation in cognitive radio networks. Our proposed pricing model describes the interaction between competing Application Service Providers, service broker and end users. We use game theory as a mathematical basis for the analysis of interactive decision-making process among the actors of the given telecommunication market. The empirical studies show that the end users do not always prefer a service provider with the cheapest unit price, but their decisions also depend on the received QoS level. The Nash equilibrium tells the service provider the ideal point where profit is maximized at the highest level of customer satisfaction.