Dynamic Spectrum Allocation by Hierarchical Resource Trading

Dynamic spectrum allocation is a key technique to face spectrum scarcity and inefficient pre-allocation of resources in an environment of rapidly growing demands for mobile communications. By allowing operators to adaptively exchange transmission resources of their communication systems with each other by way of trading, short-term traffic variations can be addressed based on local actual demand. Concatenating trading areas and coarsening the time scale, pre-allocation of resources can be adapted with respect to long-term estimations of traffic, thereby building a hierarchic market framework for trading transmission resources. Numerical simulations show, that our approach can lead to a significant increase in resource usage.