Applications of Game Theory and Microeconomics in Cognitive Radio and Femtocell Networks

Cognitive radio networks have recently been proposed as a promising approach to overcome the serious problem of spectrum scarcity. Other emerging concept for innovative spectrum utilization is femtocells. Femtocells are low-power and short-range wireless access points installed by the end-user in residential or enterprise environments. A common feature of cognitive radio and femtocells is their two-tier nature involving primary and secondary users (PUs, SUs). While this new paradigm enables innovative alternatives to conventional spectrum management and utilization, it also brings its own technical challenges. A main challenge in cognitive radio is the design of efficient resource (spectrum) trading methods. Game and microeconomics theories provide tools for studying the strategic interactions through rationality and economic benefits between PUs and SUs for effective resource allocation. In this thesis, we investigate some efficient game theoretic and microeconomic approaches to address spectrum trading in cognitive networks. We propose two auction frameworks for shared and exclusive use models. In the first auction mechanism, we consider the shared used model in cognitive radio networks and design a spectrum trading method to maximize the total satisfaction of the SUs and revenue of the Wireless Service Provider (WSP). In the second auction mechanism, we investigate spectrum trading via auction approach for exclusive usage spectrum access model in cognitive radio networks. We consider a realistic valuation function and propose an efficient concurrent Vickrey-Clarke-Grove (VCG) mechanism for non-identical channel allocation among r-minded bidders in two different cases. The realization of cognitive radio networks in practice requires the development of effective spectrum sensing methods. A fundamental question is how much time to allocate for sensing purposes. In the literature on cognitive radio, it is commonly assumed that fixed time durations are assigned for spectrum sensing and data transmission. It is however possible to improve the network performance by finding the best tradeoff between sensing time and throughput. In this thesis, we derive an expression for the total average throughput of the SUs over time-varying fading channels. Then we maximize the total average throughput in terms of sensing time and the number of SUs assigned to cooperatively sense each channel. For practical implementation, we propose a dynamical programming algorithm for joint optimization of sensing time and the number of cooperating SUs for sensing purpose. Simulation results demonstrate that significant improvement in the throughput of SUs is achieved in the case of joint optimization. In the last part of the thesis, we further address the challenge of pricing in oligopoly market for open access femtocell networks. We propose dynamic pricing schemes based on microeconomic and game theoretic approaches such as market equilibrium, Bertrand game, multiple-leader-multiple-follower Stackelberg game. Based on our approaches, the per unit price of spectrum can be determined dynamically and mobile service providers can gain more revenue than fixed pricing scheme. Our proposed methods also provide residential customers more incentives and satisfaction to participate in open access model.1 yea

Dynamic Geospatial Spectrum Modelling: Taxonomy, Options and Consequences

Much of the research in Dynamic Spectrum Access (DSA) has focused on opportunistic access in the temporal domain. While this has been quite useful in establishing the technical feasibility of DSA systems, it has missed large sections of the overall DSA problem space. In this paper, we argue that the spatio-temporal operating context of specific environments matters to the selection of the appropriate technology for learning context information. We identify twelve potential operating environments and compare four context awareness approaches (on-board sensing, databases, sensor networks, and cooperative sharing) for these environments. Since our point of view is overall system cost and efficiency, this analysis has utility for those regulators whose objectives are reducing system costs and enhancing system efficiency. We conclude that regulators should pay attention to the operating environment of DSA systems when determining which approaches to context learning to encourage

Combining Spot and Futures Markets: A Hybrid Market Approach to Dynamic Spectrum Access

Dynamic spectrum access is a new paradigm of secondary spectrum utilization and sharing. It allows unlicensed secondary users (SUs) to exploit opportunistically the under-utilized licensed spectrum. Market mechanism is a widely-used promising means to regulate the consuming behaviours of users and, hence, achieves the efficient allocation and consumption of limited resources. In this paper, we propose and study a hybrid secondary spectrum market consisting of both the futures market and the spot market, in which SUs (buyers) purchase under-utilized licensed spectrum from a spectrum regulator, either through predefined contracts via the futures market, or through spot transactions via the spot market. We focus on the optimal spectrum allocation among SUs in an exogenous hybrid market that maximizes the secondary spectrum utilization efficiency. The problem is challenging due to the stochasticity and asymmetry of network information. To solve this problem, we first derive an off-line optimal allocation policy that maximizes the ex-ante expected spectrum utilization efficiency based on the stochastic distribution of network information. We then propose an on-line VickreyCClarkeCGroves (VCG) auction that determines the real-time allocation and pricing of every spectrum based on the realized network information and the pre-derived off-line policy. We further show that with the spatial frequency reuse, the proposed VCG auction is NP-hard; hence, it is not suitable for on-line implementation, especially in a large-scale market. To this end, we propose a heuristics approach based on an on-line VCG-like mechanism with polynomial-time complexity, and further characterize the corresponding performance loss bound analytically. We finally provide extensive numerical results to evaluate the performance of the proposed solutions.Comment: This manuscript is the complete technical report for the journal version published in INFORMS Operations Researc

When is electromagnetic spectrum fungible?

Fungibility is a common assumption for market-based spectrum management. In this paper, we explore the dimensions of practical fungibility of frequency bands from the point of view of the spectrum buyer who intends to use it. The exploration shows that fungibility is a complex, multidimensional concept that cannot casually be assumed. We develop two ideas for quantifying fungibility-(i) of a fungibility space in which the 'distance' between two slices of spectrum provides score of fungibility and (ii) a probabilistic score of fungibility. © 2012 IEEE