Spectrum Trading Analyze in the Spectrum Sharing Framework in Cognitive Radio Networks

Abstract

The effective design of a cognitive radio network must take into account economic and technical aspects. This article presents a commercial formulation of the spectrum by the primary operators who decide to sell a part of their spectrum to a group of cognitive users in order to earn money and to promote the efficient use of the spectrum. Three systems of spectrum pricing are compared and suggested, such as the cooperative price based on the optimization of the profits, the market equilibrium, and the competitive prices focused on the competition of Bertrand. The Bertrand model examines the influences of certain parameters of the system such as the quality of the channel based on the Nash equilibrium and the substitutability of the spectrum. The differences in the various aspects of these systems of pricing are presented through the graphs. The authors note through the obtained result that the profit of the primary operator depends not only on the demand quantity of the spectrum but also on the behavior of the primary operators.