Coded power control: Performance analysis

In this paper, we introduce the general concept of coded power control (CPC) in a particular setting of the interference channel. Roughly, the idea of CPC consists in embedding information (about the channel state) into the transmit power levels themselves: in this new framework, provided the power levels of a given transmitter can be observed by other transmitters, a sequence of power levels of the former can therefore be used to coordinate the latter. To assess the limiting performance of CPC (and therefore the potential performance brought by this new approach), we derive, as a first step towards many extensions of the present work, a general result which not only concerns power control (PC) but also any scenario involving two decision-makers (DMs) which communicate through their actions and have the following information and decision structures. We assume that the DMs want to maximize the average of an arbitrarily chosen instantaneous payoff function which depends on the DMs´ actions and the state realization. DM 1 is assumed to know the state non-causally (e.g., the channel state) which affects the common payoff while DM 2 has only a strictly causal knowledge of it. DM 1 can only use its own actions (e.g., power levels) to inform DM 2 about its best action in terms of payoff. Importantly, DM 2 can only monitor the actions of DM 1 imperfectly and DM 2 does not need to be observed by DM 1. The latter assumption leads us to exploiting Shannon-theoretic tools in order to generalize an existing theorem which provides the information constraint under which the average payoff is maximized. The derived result is then exploited to fully characterize the performance of good CPC policies for a given instance of the interference channel.