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Contract-Based Secondary Spectrum Trading

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Handbook of Cognitive Radio

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Abstract

Secondary spectrum trading is a promising solution to address the economic incentive issue in dynamic spectrum access, by allowing primary users (PUs) to sell the underutilized spectrum to secondary users (SUs) for the temporary access. This chapter studies a monopoly secondary spectrum market with a single PU (seller) and multiple heterogeneous SUs (buyers), where SUs have different preferences for spectrum access quality. The key focus is to study the optimal trading mechanism for the PU (that maximizes his profit) under information symmetry or asymmetry, depending on whether the preference of each SU is public information (hence can be observed by the PU) or private information (hence cannot be observed by the PU). The key solution idea to this PU-profit maximization problem is a contract-based spectrum trading mechanism, in which the PU offers a list of quality-price combinations (called a contract) for SUs, and each SU chooses the proper quality and price according to his (private or public) preference information. The optimal design for this contract-based trading mechanism consists of two steps: (i) analyze the incentive compatibility (IC) and individual rationality (IR) for feasible contracts, which guarantee the truthful information disclosure of SUs, and (ii) derive the optimal contract that maximizes the PU’s profit under each information scenario, based on the IC and IR analysis in the first step. Simulations show that the optimal contract can increase the PU’s payoff significantly.

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Author information

Authors and Affiliations

  1. School of Electronic and Information Engineering, Harbin Institute of Technology, Shenzhen, China

    Lin Gao & Qinyu Zhang

  2. EE & CS Department in School of Electronic Information & Electrical Engineering, Shanghai Jiao Tong University, Shanghai, China

    Xinbing Wang

  3. National Engineering Research Center for Communications and Networking, Nanjing University of Posts and Telecommunications, Nanjing, China

    Youyun Xu

Authors
  1. Lin Gao
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  2. Xinbing Wang
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  3. Youyun Xu
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  4. Qinyu Zhang
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Corresponding author

Correspondence to Qinyu Zhang .

Editor information

Editors and Affiliations

  1. Electrical Engg Bldg, Rm 325, The University of New South Wales, Sydney, New South Wales, Australia

    Wei Zhang

Section Editor information

  1. Department of Information Engineering, The Chinese University of Hong Kong, Room 834, Ho Sin Hang Engineering Building, Shatin, New Territory, Hong Kong, China

    Jianwei Huang

  2. School of Data and Computer Science, Sun Yat-sen University, 510006, Guangzhou, Guangdong, China

    Xu Chen

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© 2017 Springer Nature Singapore Pte Ltd.

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Gao, L., Wang, X., Xu, Y., Zhang, Q. (2017). Contract-Based Secondary Spectrum Trading. In: Zhang, W. (eds) Handbook of Cognitive Radio . Springer, Singapore. https://doi.org/10.1007/978-981-10-1389-8_31-1

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  • DOI: https://doi.org/10.1007/978-981-10-1389-8_31-1

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  • Publisher Name: Springer, Singapore

  • Print ISBN: 978-981-10-1389-8

  • Online ISBN: 978-981-10-1389-8

  • eBook Packages: Springer Reference EngineeringReference Module Computer Science and Engineering

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