Economic Analysis of Crowdsourced Wireless Community Networks
Qian Ma, Lin Gao, Ya-Feng Liu, Jianwei Huang

TL;DR
This paper provides an economic analysis of crowdsourced wireless community networks, focusing on user behavior and pricing strategies, proposing a partial pricing scheme that significantly boosts operator revenue.
Contribution
It introduces a two-layer Stackelberg model for pricing and user behavior, and designs a partial price differentiation scheme balancing revenue and complexity.
Findings
Partial pricing scheme increases revenue by up to 124.44% over single pricing.
Partial scheme achieves 80% of maximum revenue of complete differentiation.
Model effectively captures user behavior and operator strategies in crowdsourced networks.
Abstract
Crowdsourced wireless community networks can effectively alleviate the limited coverage issue of Wi-Fi access points (APs), by encouraging individuals (users) to share their private residential Wi-Fi APs with others. In this paper, we provide a comprehensive economic analysis for such a crowdsourced network, with the particular focus on the users' behavior analysis and the community network operator's pricing design. Specifically, we formulate the interactions between the network operator and users as a two-layer Stackelberg model, where the operator determining the pricing scheme in Layer I, and then users determining their Wi-Fi sharing schemes in Layer II. First, we analyze the user behavior in Layer II via a two-stage membership selection and network access game, for both small-scale networks and large-scale networks. Then, we design a partial price differentiation scheme for the…
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