A pricing mechanism for Femto Base Stations

Telecom service providers have not control over functionality of Femto-BSs. However, they can motivate home service providers to cooperate with them (e.g. activate their Femto-BSs) by porpoising a reasonable price for service they provide. A home service provider can then evaluate its utility according to the price proposed by the telecoms service provider and decide to cooperate if it gets a positive utility. In this report, we propose a pricing mechanism and evaluate the behavior of home service providers (i.e., the number of active Femto-BSs) for a given price. We mainly focus our attention on Nash equilibrium analysis.