In this paper, the pricing and bandwidth allocation in heterogeneous wireless access networks is studied. Demand modeling and resource allocation in heterogeneous wireless access networks is carried out using the theories of microeconomics in competitive markets. A competitive market model for bandwidth allocation and pricing is presented where new relaxation models and propositions are developed to address various aspects of the operation of wirless access networks such as roaming and hand off control. We used the existing market theories to develop a solution for pricing of a unit of bandwidth of each network based on the marginal cost of the product. The client preferences with regard to available networks are also modeled in our network market model. On the other hand, network providers also adjust their product offering according to the market price. We prove that the user and bandwidth assignment made on the basis of this model where all agents have rational behavior is Pareto optimum that maximizes the utility of networks and clients.
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