  With the increasing demand for wireless services, spectrum management
agencies and service providers (SPs) are seeking more flexible mechanisms for
spectrum sharing to accommodate this growth. Such mechanisms impact the market
dynamics of competitive SPs. Prior market models of spectrum sharing largely
focus on scenarios where competing SPs had identical coverage areas. We depart
from this and consider a scenario in which two competing SPs have overlapping
but distinct coverage areas. We study the resulting competition using a Cournot
model. Our findings reveal that with limited shared bandwidth, SPs might avoid
overlapping areas to prevent potential losses due to interference. Sometimes
SPs can strategically cooperate by agreeing not to provide service in the
overlapping areas and, surprisingly, customers might also benefit from such
cooperation under certain circumstances. Overall, market outcomes exhibit
complex behaviors that are influenced by the sizes of coverage areas and the
bandwidth of the shared spectrum.
