Interactions among selfish users sharing a common transmission channel can be modeled as a non-cooperative game using the game theory framework. When selfish users choose their transmission probabilities independently without any coordination mechanism, Nash equilibria usually result in a network collapse. We propose a methodology that transforms the non-cooperative game into a Stackelberg game. Stackelberg equilibria of the Stackelberg game can overcome the deficiency of the Nash equilibria of the original game. A particular type of Stackelberg intervention is constructed to show that any positive payoff profile feasible with independent transmission probabilities can be achieved as a Stackelberg equilibrium payoff profile. We discuss criteria to select an operating point of the network and informational requirements for the Stackelberg game.We relax the requirements and examine the effects of relaxation on performance. and its enhanced version, EDCF, competition among selfish users can lead to an inefficient use of the shared channel in Nash equilibria [2]. Similarly, a prisoner's dilemma phenomenon arises in a non-cooperative game for a generalized version of slotted-Aloha protocols [3].In general, if a game has Nash equilibria yielding low payoffs for the players, it will be desirable for them to transform the game to extend the set of equilibria to include better outcomes [4]. The
In communication systems where users share common resources, users' selfish behavior usually results in suboptimal resource utilization. There have been extensive works that model communication systems with selfish users as one-shot games and propose incentive schemes to achieve Pareto optimal action profiles as non-cooperative equilibria. However, in many communication systems, due to strong negative externalities among users, the sets of feasible payoffs in one-shot games are nonconvex. Thus, it is possible to expand the set of feasible payoffs by having users choose convex combinations of different payoffs. In this paper, we propose a repeated game model generalized by intervention. First, we use repeated games to convexify the set of feasible payoffs in one-shot games. Second, we combine conventional repeated games with intervention, originally proposed for one-shot games, to achieve a larger set of equilibrium payoffs and loosen requirements for users' patience to achieve it. We study the problem of maximizing a welfare function defined on users' equilibrium payoffs, subject to minimum payoff guarantees. Given the optimal equilibrium payoff, we derive the minimum intervention capability required and design corresponding equilibrium strategies. The proposed generalized repeated game model applies to various communication systems, such as power control and flow control.
Focusing on a femtocell communications market, we study the entrant network service provider's (NSP's) longterm decision: whether to enter the market and which spectrum sharing technology to select to maximize its profit. This long-term decision is closely related to the entrant's pricing strategy and the users' aggregate demand, which we model as medium-term and short-term decisions, respectively. We consider two markets, one with no incumbent and the other with one incumbent. For both markets, we show the existence and uniqueness of an equilibrium point in the user subscription dynamics, and provide a sufficient condition for the convergence of the dynamics. For the market with no incumbent, we derive upper and lower bounds on the optimal price and market share that maximize the entrant's revenue, based on which the entrant selects an available technology to maximize its long-term profit. For the market with one incumbent, we model competition between the two NSPs as a non-cooperative game, in which the incumbent and the entrant choose their market shares independently, and provide a sufficient condition that guarantees the existence of at least one pure Nash equilibrium. Finally, we formalize the problem of entry and spectrum sharing scheme selection for the entrant and provide numerical results to complement our analysis.
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