In this paper, we consider a setting in which geographically constrained “local” wireless services operate in a shared spectrum band and compete in the same market for customers who fall within their local coverage areas. When their desired coverage areas overlap, there are multiple ways that spectrum usage could be coordinated. We discuss ways in which this coordination could arise. We then characterize the market impacts of different forms of coordination via a framework of Cournot competition with congestion. Our analysis illustrates the economic trade-offs of different coordination mechanisms for local services.
