Revenue and utility maximization under centralized dynamic spectrum allocation

In order to utilize the spectrum resource more efficiently, with the development of cognitive radio technologies, dynamic spectrum allocation has been viewed as a promising approach to increasing spectrum usage and efficiency. With dynamic spectrum allocation, wireless service providers that operate in fixed spectrum bands allocated through static allocation can solve their short-term spectrum shortage problems. Dynamic spectrum allocation mechanisms should be coupled with dynamic pricing schemes to achieve efficient allocation. We model the dynamic spectrum allocation problem with a centralized spectrum broke as a multi-stage non-cooperative dynamic game. In this spectrum trading game, all players' behaviors and dynamics need to be taken into consideration. Furthermore, we present an economic framework and propose a centralized spectrum allocation mechanism to optimize spectrum allocation. The simulation results show that the centralized spectrum allocation mechanism with dynamic pricing achieves dynamic spectrum allocation that is responsive to market conditions.