Optimal Pricing for Service Provisioning in the Secondary Spectrum Market

Abstract

In this paper, we investigate the problem of spectrum sharing in a secondary spectrum market where one secondary operator provisions network access services to a number of secondary users (SUs) by leasing spectrum from spectrum holder. For the system model under consideration, the spectrum allocated to the secondary operator can be shared by SUs. We model the interaction between the secondary operator and SUs as a two-stage Stackelberg game, where the secondary operator network price decisions in the first stage, and SUs make their spectrum demands decisions in the second stage. We use the backward induction method to solve this game. The numerical results show that the proposed solution method can capture the main factors of the secondary spectrum market, and provide a promising framework for the design of future secondary CR systems.