SDP research papers can be roughly categorized by the different types of pricing that they investigate. We consider 15 such topics here. If you know of a paper we missed, let us know.

Wireless spectrum pricing (18)

In order to provide cellular network services, service providers need to purchase wireless spectrum, which is usually done by participating in a government auction. So-called “primary” spectrum holders, who are successful in purchasing spectrum, can then resell this spectrum on a temporary basis to other parties in secondary spectrum markets.

TODA: Truthful online double auction for spectrum allocation in wireless networks

S. Wang, P. Xu, X. Xu, S. Tang, X. Li and X. Liu  Proceedings of IEEE DySpan, 2010

The spectrum usage by a secondary user often happens in a certain geographical region and in a certain time interval, and the requests often come in an online fashion. Considering the selfish behaviors of primary users and secondary users, it is imperative to design online double spectrum auction methods. The most significant challenge is how to make the online double auction economic-robust (truthful in particular). Unfortunately, existing designs either do not consider the online requests or become untruthful when applied to scenarios when both primary users and secondary users could be selfish. In this paper, we address this problem by proposing TODA, a general framework for truthful online double auction for spectrum allocation. We assume that there is a central auctioneer, and the arrivals of secondary users' requests follow Poisson distribution. Upon receiving online spectrum requests, the central auctioneer will decide immediately which secondary and primary users will win the auction, and match winning primary users and secondary users, as well as decide how much secondary users should pay and primary users should get. To preempt existing spectrum usage is not allowed. We study the case in which the conflict graph of secondary users is a complete graph, which occurs in the urban area where the distribution of the secondary users is very dense. In this case, we design strategyproof (truthful) mechanisms for both the primary users and secondary users. To the best of our knowledge, we are the first to design truthful online double auction mechanisms for spectrum allocation. Our simulation results show that the expected social efficiency ratio of our mechanism is always above 80% compared with the off-line VCG mechanism and the spectrum utilization ratio is around 70% when the system is highly loaded.

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Demand responsive pricing and competitive spectrum allocation via a spectrum server

O. Ileri, D. Samardzija and N. B. Mandayam  Proceedings of IEEE DySpan, 2005

In this paper we develop a framework for competition of future operators likely to operate in a mixed commons/property-rights regime under the regulation of a spectrum policy server (SPS). The operators dynamically compete for customers as well as portions of available spectrum. The operators are charged by the SPS for the amount of bandwidth they use in their services. Through demand responsive pricing, the operators try to come up with convincing service offers for the customers, while trying to maximize their profits. We first consider a single-user system as an illustrative example. We formulate the competition between the operators as a non-cooperative game and propose an SPS-based iterative bidding scheme that results in a Nash equilibrium of the game. Numerical results suggest that, competition increases the user's (customer's) acceptance probability of the offered service, while reducing the profits achieved by the operators. It is also observed that as the cost of unit bandwidth increases relative to the cost of unit infrastructure (fixed cost), the operator with superior technology (higher fixed cost) becomes more competitive. We then extend the framework to a multiuser setting where the operators are competing for a number of users at once. We propose an SPS-based bandwidth allocation scheme in which the SPS optimally allocates bandwidth portions for each user-operator session to maximize its overall expected revenue resulting from the operator payments. Comparison of the performance of this scheme to one in which the bandwidth is equally shared between the user-operator pairs reveals that such an SPS-based scheme improves the user acceptance probabilities and the bandwidth utilization in multiuser systems

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Spectrum pricing games with bandwidth uncertainty and spatial reuse in cognitive radio networks

G. S. Kasbekar and S. Sarkar  Proceedings of ACM MobiHoc, 2010

In cognitive radio networks (CRN), primary users can lease out their unused bandwidth to secondary users in return for a fee. We study price competition in a CRN with multiple primaries and e secondaries in a region, where each primary tries to attract secondaries by setting a lower price for his bandwidth than other primaries. A CRN has two distinctive features, which makes the price competition very different from that in traditional commodity markets. First, in every slot, each primary may or may not have unused bandwidth available. So primaries are uncertain about the number of other primaries from whom they face competition. Second, spectrum is a commodity that allows spatial reuse: the same band can be simultaneously used at far-off locations without interference; on the other hand, simultaneous transmissions at neighboring locations on the same band interfere with each other. As a result, a primary cannot offer bandwidth at all locations, but must select an independent set of locations at which to offer it. Also, the choice of the independent set and the prices at those locations must be made jointly. We formulate price competition in a CRN as a game, taking into account both bandwidth uncertainty and spatial reuse. We analyze the game in a single slot, as well as its repeated version. In each case, we not only prove the existence of a Nash equilibrium, but also explicitly compute it. The expressions we obtain provide interesting insights into how the price competition evolves for different values of the system parameters. Moreover, for the game in a single slot, we prove the uniqueness of the Nash equilibrium in the class of symmetric equilibria.

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Dynamic spectrum access can significantly improve the spectrum utilization. For wireless service providers, the emergence of dynamic spectrum access brings new opportunities and challenges. The flexible spectrum acquisition gives a particular provider the chance to easily adapt its system capacity to fit end users' demand. However, the competition among several providers for both spectrum and end users complicates the situation. In this paper, we propose a general three-layer spectrum market model for the future dynamic spectrum access system, in which the interaction among spectrum holder, wireless service providers and end users are considered. We study a duopoly situation, where two wireless service providers participate in bandwidth competition in spectrum purchasing and price competition to attract end users, with the aim of maximizing their own profit. We believe we are the first one to explicitly study the relation of these two competitions in dynamic spectrum market. We formulate the wireless service providers' competition as a non-cooperative two-stage game. We first analyze the static game when full information is available for providers. Under general assumptions about the price and demand functions, a unique pure Nash equilibrium is identified as the outcome of the game, which shows the stability of the market. We further evaluate the market efficiency of the equilibrium in a symmetric case, and show that the gap with the social optimal is bounded within a small constant ratio. When the market information is limited, we provide myopically optimal adjustment algorithms for the providers. With such strategies, short term price updating converges to the Nash equilibrium of the given subgame, while long term bandwidth updating converges to a point close to the Nash equilibrium of the full game.

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Investment and pricing with spectrum uncertainty: A cognitive operator’s perspective

L. Duan, J. Huang and B. Shou  IEEE Transactions on Mobile Computing, 10(11): 1590—1604, 2011

This paper studies the optimal investment and pricing decisions of a cognitive mobile virtual network operator (C-MVNO) under spectrum supply uncertainty. Compared with a traditional MVNO who often leases spectrum via long-term contracts, a C-MVNO can acquire spectrum dynamically in short-term by both sensing the empty “spectrum holes” of licensed bands and dynamically leasing from the spectrum owner. As a result, a C-MVNO can make flexible investment and pricing decisions to match demands of the secondary unlicensed users. Compared to dynamic spectrum leasing, spectrum sensing is typically cheaper, but the obtained useful spectrum amount is random due to primary licensed users' stochastic traffic. The C-MVNO needs to determine the optimal amounts of spectrum sensing and leasing by evaluating the trade-off between cost and uncertainty. The C-MVNO also needs to determine the optimal price to sell the spectrum to the secondary unlicensed users, taking into account wireless heterogeneity of users such as different maximum transmission power levels and channel gains. We model and analyze the interactions between the C-MVNO and secondary unlicensed users as a Stackelberg game. We show several interesting properties of the network equilibrium, including threshold structures of the optimal investment and pricing decisions, the independence of the optimal price on users' wireless characteristics, and guaranteed fair and predictable QoS among users. We prove that these properties hold for general SNR regime and general continuous distributions of sensing uncertainty. We show that spectrum sensing can significantly improve the C-MVNO's expected profit and users' payoffs.

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An economic framework for dynamic spectrum access and service pricing

S. Sengupta and M. Chatterjee  IEEE/ACM Transactions on Networking, 17(4): 1200—1213, 2009

The concept of dynamic spectrum access will allow the radio spectrum to be traded in a market like scenario allowing wireless service providers (WSPs) to lease chunks of spectrum on a short-term basis. Such market mechanisms will lead to competition among WSPs where they not only compete to acquire spectrum but also attract and retain users. Currently, there is little understanding on how such a dynamic trading system will operate so as to make the system feasible under economic terms. In this paper, we propose an economic framework that can be used to guide i) the dynamic spectrum allocation process and ii) the service pricing mechanisms that the providers can use. We propose a knapsack based auction model that dynamically allocates spectrum to the WSPs such that revenue and spectrum usage are maximized. We borrow techniques from game theory to capture the conflict of interest between WSPs and end users. A dynamic pricing strategy for the providers is also proposed. We show that even in a greedy and non-cooperative behavioral game model, it is in the best interest of the WSPs to adhere to a price and channel threshold which is a direct consequence of price equilibrium. Through simulation results, we show that the proposed auction model entices WSPs to participate in the auction, makes optimal use of the spectrum, and avoids collusion among WSPs. We demonstrate how pricing can be used as an effective tool for providing incentives to the WSPs to upgrade their network resources and offer better services.

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Spot pricing of secondary spectrum usage in wireless cellular networks

H. Mutlu, M. Alanyali and D. Starobinski  Proceedings of IEEE INFOCOM, 2008

Recent deregulation initiatives enable cellular providers to sell excess spectrum for secondary usage. In this paper, we investigate the problem of optimal spot pricing of spectrum by a p