Achieving Simultaneous Spectrum Utilization and Revenue Improvements in Practical Wireless Spectrum Auctions

Authors

Abstract

Spectrum is a valuable, scarce and finite natural resource
that is needed for many different applications, so efficient use of the
scarce radio spectrum is important for accommodating the rapid
growth of wireless communications. Spectrum auctions are one of the
best-known market-based solutions to improve the efficiency of
spectrum use. However, Spectrum auctions are fundamentally different
from conventional auctions because of the spectrum’s unique property
of reusability. Unlike traditional goods, the spectrum can be spatially
reused concurrently. To handle spectrum reusability, a buyer grouping
procedure has been applied in many existing spectrum auction schemes,
in which the buyer’s interference conditions are modeled as conflict
graph. Buyer grouping problem can be transformed into the problem of
finding chromatic number or maximum independent set of a graph,
which is NP-hard and there is no efficient algorithm till now. Several
approximate algorithms have been proposed to tackle the spectrum
reuse problem. It is important to note that almost none of the proposed
algorithms for spectrum buyer grouping have been specifically designed
for spectrum allocation. However, buyer grouping in a practical
spectrum auction mechanism has its own challenges. In this paper, first
we illustrate the challenges of buyer grouping in a practical spectrum
auction mechanism. Then we propose the novel algorithms for spectrum
buyer grouping to solve these challenges. By extensive simulations, we
show that our proposed algorithms can not only solve the challenges
caused by radio spectrum properties but also provide good performance
on various auction metrics.

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