Optimal Pricing and Admission Control for Heterogeneous Secondary Users

Abstract

This paper studies how to maximize a spectrum database operator's expected revenue in sharing spectrum to secondary users, through joint pricing and admission control of spectrum resources. A unique feature of our model is the consideration of the stochastic and heterogeneous nature of secondary users' demands. We formulate the problem as a stochastic dynamic programming problem, and present the optimal solutions under both static and dynamic pricing schemes. In the case of static pricing, the prices do not change with time, although the admission control policy can still be time-dependent. In this case, we show that a stationary (time-independent) admission policy is in fact optimal under a wide range of system parameters. In the case of dynamic pricing, we allow both prices and admission control policies to be time-dependent. We show that the optimal dynamic pricing can improve the operator's revenue by more than 30% over the optimal static pricing, when secondary users' demands for spectrum opportunities are highly elastic.

Spectrum Sharing Schemes From 4G to 5G and Beyond: Protocol Flow, Regulation, Ecosystem, Economic

“…Moreover, to provide the partners' profits in the network, such as MNOs, InP, and ISPs, several works have studied game-based algorithms for scenarios such as cooperation and competition. In [193], the authors propose a spectrum database operator by utilizing joint pricing and admission control of spectrum resources to maximize the revenue expectations. Unlike other models, the proposed model takes into account the stochastic and heterogeneous nature of secondary users' demands as a unique feature.…”

TV white space and its applications in future wireless networks and communications: a survey

“…Therefore, how to perform spectrum allocation in the femtocell network over TVWS is still left for further study. Business modelbased spectrum allocation proposed in [73][74][75] may be worth a try for solving this problem.…”

Cooperative Overlay Spectrum Access in Cognitive Radio Networks

“…The distributed cooperation aided overlay and underlay paradigm of CR networks has been discussed in [70], where in the overlay system the CUs were allowed to opportunistically access the radio spectrum allocated to the PUs, provided that the relays offered relaying services for the PUs. Therefore, the knowledge of sharing and cooperation between the CUs and PUs in the overlay SAS have been literature in [71], [72]. In contrast to the overlay scheme, in the underlay scheme, a CU distributively selects the frequency of the channel and the transmission power level for maximizing its level of satisfaction while at the same time avoiding any excessive interference imposed on the PUs.…”