TY - JOUR
T1 - A Model for Joint Engineering-Economic Analysis of Cellular Systems
AU - Fund, Fraida
AU - Shahsavari, Shahram
AU - Panwar, Shivendra S.
AU - Erkip, Elza
N1 - Funding Information:
Manuscript received June 16, 2020; revised August 10, 2020; accepted October 2, 2020. Date of publication October 13, 2020; date of current version February 9, 2021. This work was supported in part by the National Science Foundation under Grant 1547332, Grant 1302336, and Grant 1527750; in part by the GRFP; in part by the New York State Center for Advanced Technology in Telecommunications; and in part by NYU WIRELESS. The associate editor coordinating the review of this article and approving it for publication was P. Pawelczak. (Corresponding author: Shahram Shahsavari.) Fraida Fund, Shivendra S. Panwar, and Elza Erkip are with the ECE Department, NYU Tandon School of Engineering, Brooklyn, NY 11201 USA (e-mail: ffund@nyu.edu; panwar@nyu.edu; elza@nyu.edu).
Publisher Copyright:
© 2012 IEEE.
PY - 2021/2
Y1 - 2021/2
N2 - Economic models of network effects, which describe how the market for a good or service depends on the number of units sold, have been used for decades in the economics literature. However, it is not clear how these models may be applied to the cellular network service. The relationship between the 'value' of cellular service and the 'size' of the cellular network (including the base station density, user density, and bandwidth), is not straightforward. Furthermore, this relationship is dependent on physical and technical characteristics of the network. This letter develops a joint engineering-economic model for network effects in cellular networks. The model captures the relationship between the network size and its technical characteristics, and the behavior of the market for that service. It is shown how the developed model can be used to find equilibrium size of the market for different networks. For example, this model identifies and formalizes fundamental differences between the markets for millimeter wave and microwave networks, that are not revealed by standard engineering or economic analyses.
AB - Economic models of network effects, which describe how the market for a good or service depends on the number of units sold, have been used for decades in the economics literature. However, it is not clear how these models may be applied to the cellular network service. The relationship between the 'value' of cellular service and the 'size' of the cellular network (including the base station density, user density, and bandwidth), is not straightforward. Furthermore, this relationship is dependent on physical and technical characteristics of the network. This letter develops a joint engineering-economic model for network effects in cellular networks. The model captures the relationship between the network size and its technical characteristics, and the behavior of the market for that service. It is shown how the developed model can be used to find equilibrium size of the market for different networks. For example, this model identifies and formalizes fundamental differences between the markets for millimeter wave and microwave networks, that are not revealed by standard engineering or economic analyses.
KW - Engineering-economic model
KW - microwave
KW - millimeter wave
KW - resource sharing
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U2 - 10.1109/LWC.2020.3030227
DO - 10.1109/LWC.2020.3030227
M3 - Article
AN - SCOPUS:85101469620
SN - 2162-2337
VL - 10
SP - 344
EP - 348
JO - IEEE Wireless Communications Letters
JF - IEEE Wireless Communications Letters
IS - 2
M1 - 9222237
ER -