WSN03-3: Dynamic Pricing Approach for Spectrum Allocation in Wireless Networks with Selfish Users

Dynamic spectrum allocation becomes a promising approach to increase the spectrum efficiency for wireless networks. In this paper, we consider the spectrum allocation in wireless networks with multiple selfish legacy spectrum holders and unlicensed users as multi-stage dynamic games. A dynamic pricing approach is proposed to optimize overall spectrum efficiency while keeping the participating incentives of the users based on double-auction rules. Moreover, a belief system is developed to assist selfish users to dynamically update their strategies adaptive to the network dynamics and substantially decrease the pricing overhead. The simulation results show that our proposed scheme not only approaches optimal outcomes but also has low overhead.