Energy Efficient Short Term Spectrum Auction Using the Concept of Green Payments

Abstract

This work seeks to demonstrate the economic importance of short-term spectrum auction and how it can be implemented with fewer overheads. This can be achieved using the proposed market driven sealed bid spectrum auction process with a novel concept called the green payment. The green payment serves as an incentive during the auction process to encourage the users to use the radio spectrum in an efficient manner. The model proposes to tax users that are not power efficient while those that are power efficient pay a subsidy during the auction process. First, the appropriate bidding and auction periods are examined and determined such that the bidding period is dependent on the traffic load in the system. Using the obtained bidding period, the value of the green payments is then examined and the appropriate level of tax and subsidy are also determined. The economic importance of the model in terms of the revenue generation for the service provider and in terms of the tax being adequate to finance the subsidy is also examined. These results show that using the proposed concept of green payment, the energy consumed and the system delay can be reduced when compared to a non-green payment based auction process. The results also show that the proposed model is beneficial to the service provider in terms of increase in profit and that the tax and subsidy system is self-sustaining.

Energy Efficient Spectrum Auction Process with Utility Functions

“…The green payment was earlier formulated in our work in [23]. The GP is either in the form of a tax or a subsidy, and the main aim of introducing this is to allow the bids of the LPU to be subsidised, to allow the bids of the HPU to be taxed and to increase the probability of LPU winning the bid.…”

A Game Based Energy Sensitive Spectrum Auction Model and Bid Learning Process for Cognitive Radio Systems

“…When the demand is low the reserve price helps to retain the minimum selling price of the WSP as shown in [8]. It is formulated by taking into account the current traffic load in the system, the frequency band, the total number of channels and the number of channels in use as:…”

“…In addition to this, the concept of Cognitive Radio Networks (CRN) has also been proposed in [6]. Consequently, to complement the dynamic network, increase the revenue of the service provider in relation to the increase in demand for expansion purposes and management of the occasional congestion as a result of people congregating in a single location such as during a football match, the Olympics or other events, dynamic pricing using the concept of an auction was also introduced in [7,8]. An auction process is important because, over the years the price paid for the spectrum has been based on potential price rather than allowing competition to reflect the actual price for the radio spectrum.…”

“…This is because of concerns about interference from secondary users. Therefore, to encourage the efficient use of the radio spectrum for secondary access, [8] has previously proposed the use of the green payments (GP) as an incentive for efficient use of the radio spectrum based on an auction. An auction process based balancing on revenue and fairness was also proposed in [9].…”

“…An auction process based balancing on revenue and fairness was also proposed in [9]. This paper uses the already proposed green paymnets in [8] to fomulate this work. This paper also examines a novel concept of a game based model in combination with an auction process to characterise the interactions that exist between the different competing elements in an auction based DSA network.…”