Game Theoretic optimization of spectrum allocation in cognitive radio

Among the many problems faced in the world of wireless Technology, the most significant one is spectrum scarcity. In terms of pure facts, the TRAI auction of spectrum bands scheduled in 2016 will generate a base price of 5.36 Lakh crores which is more than twice the revenue of major telecom providers which is around 2.5 lakh crores. This Paper proposes an algorithm which guides efficient utilization of the vacant Bandwidth in the licensed spectrum and allocating the spectrum to unlicensed users. A cognitive radio(C.R.) uses knowledge of radio technology and policy, representations of goals, and other parameters to reason about a failed attempt to satisfy a goal and attempt alternate courses of action depending upon the circumstances. This paper aims at using concepts of Game Theory to optimize the allocation of channels and use the punish and forgive strategy to ensure higher spectrum utilization. The paper holds special significance especially considering the spectrum scarcity resulting from the increase in number of mobile users from 600 million currently to around a billion by 2020, only in India..