A Contract-Theoretic Approach to Spectrum Resource Allocation in Wireless Virtualization

Wireless network virtualization has emerged as a promising technology to provide multifarious services and applications for future wireless networks due to its efficient exploitation of network resources. In a mobile virtual network (MVN), a network operator (NO) benefits from leasing physical resources, such as subcarriers, to multiple service providers (SPs), whom then make profits from offering certain wireless services to end users. To achieve the maximum profit for the NO, or the highest efficiency of a MVN, specialized trading mechanism needs to be designed when the NO is unable to access SPs' private information about cost. In this paper, we tackle the problem of efficient trading of subcarriers under incomplete information from the SPs to the NO. First, a general system model is developed with one NO and multiple SPs engaged in a trading relation to exchange spectrum resources and money. Subsequently, an optimal trading contract is derived to maximize the total utility at the NO, while maintaining the requirements by the SPs in the trading process. Simulation results confirm our analysis on the optimal contract and its benefits.