Optimizing the second-price auction algorithm in a dynamic cognitive radio network

We adopt the second-price auction mechanisms to solve the channel allocation as well as the out-band sensing assignment problems in cognitive radio. We introduce a cheating-proof operating method by realizing the pricing scheme in a real time format. To adapt to the dynamic environment, we also study the optimization problem in terms of strategic budget setting, bidding slot duration setting and supplementary bidding rules. By incorporating additional bidding rules into the second-price auction algorithm, we achieve near-optimal system efficiency. Furthermore, we look into the problem of maximizing the auctioneer’s revenue while still satisfying users’ QoS requirements. To help the auctioneer survive in a larger agile spectrum access market, we advise on the setting of optimal reserve price, so as to withstand the competition from other auctioneers.