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This paper studies the provision of a wireless network by a monopolisticprovider who may be either benevolent (seeking to maximize social welfare) orselfish (seeking to maximize provider profit). The paper addresses questionsthat do not seem to have been studied before in the engineering literature onwireless networks: Under what circumstances is it feasible for a provider,either benevolent or selfish, to operate a network in such a way as to covercosts? How is the optimal behavior of a benevolent provider different from theoptimal behavior of a selfish provider, and how does this difference affectsocial welfare? And, most importantly, how does the medium access control (MAC)technology influence the answers to these questions? To address thesequestions, we build a general model, and provide analysis and simulations forsimplified but typical scenarios; the focus in these scenarios is on thecontrast between the outcomes obtained under carrier-sensing multiple access(CSMA) and outcomes obtained under time-division multiple access (TDMA).Simulation results demonstrate that differences in MAC technology can have asignificant effect on social welfare, on provider profit, and even on the(financial) feasibility of a wireless network.

Technology Choices and Pricing Policies in Public and Private Wireless Networks