> in a case with many competing WLANs, the algorithm would typically tend to reduce the bandwidth consumed by each WLAN
Wouldn't that use more battery, since for a narrower channel the radio would have to be kept on for longer to transmit (or receive) the same amount of data?
Usually, 802.11 devices don't turn off between transmissions, so this has no effect. In fact, it's actually the opposite; using a narrower channel requires a slower clock rate, which also significantly reduces power consumption of the wireless device.