Auction-based dynamic spectrum trading market — Spectrum allocation and profit sharing

We study the problem of designing a new trading market for dynamic spectrum sharing when there are multiple sellers and multiple buyers. First, we study the interaction among homogeneous buyers of spectrum as a noncooperative game and show the existence of a symmetric mixed-strategy Nash equilibrium (SMSNE). Second, we assume that the sellers employ an optimal mechanism, called the generalized Branco´s mechanism, and prove that there exists an incentive for risk neutral sellers of the spectrum to cooperate in order to maximize their expected profits at the SMSNEs of buyers´ noncooperative game. Third, we model the interaction among the sellers as a cooperative game and demonstrate that the core of the cooperative game is nonempty. This indicates that there exists a way for the sellers to share the profits in a such manner that no subset of sellers will deviate from cooperating with the remaining sellers. Finally, we propose a profit sharing scheme that can achieve any payoff vector in the nonempty core of the cooperative game while satisfying two desirable properties.