We consider a situation where wireless service providers compete for heterogenous wireless users. The users differ in their willingness to pay as well as in their individual channel gains. We prove existence and uniqueness of the Nash equilibrium for the competition of two service providers, for a generic channel model. Interestingly, the competition of two providers leads to a globally optimal outcome. We extend some of the results to the case where more than two providers are competing. Finally, we provide numerical examples that illustrate the effects of various parameters on the Nash equilibrium.
The past ten years have seen an ever increasing number of research that focuses on the application of game theory and pricing in analyzing network service providers, initiated by the work of Kelly @cite_6 . The majority of research in the wireless setting focuses on resource allocation within the same service provider (see for example @cite_14 , @cite_12 , @cite_7 ) and on the interaction between the users of one provider ( @cite_5 , @cite_9 , @cite_15 ). Perhaps surprisingly, only a few works focus on the competition between providers in a wireless setting. We can distinguish two types of competitions between wireless service providers: competing on behalf of the users (such as @cite_8 and @cite_1 ) and price competition to attract users (such as @cite_11 , @cite_16 and @cite_0 Another related work is @cite_3 which considers two cellular providers competing for users by changing the strength of their pilot signals. ). The latter is the subject of our work.
@cite_14 @cite_7 @cite_8 @cite_9 @cite_1 @cite_6 @cite_3 @cite_0 @cite_5 @cite_15 @cite_16 @cite_12 @cite_11
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We study competition between wireless devices with incomplete information about their opponents. We model such interactions as Bayesian interference games. Each wireless device selects a power profile over the entire available bandwidth to maximize its data rate. Such competitive models represent situations in which several wireless devices share spectrum without any central authority or coordinated protocol. In contrast to games where devices have complete information about their opponents, we consider scenarios where the devices are unaware of the interference they cause to other devices. Such games, which are modeled as Bayesian games, can exhibit significantly different equilibria. We first consider a simple scenario of simultaneous move games, where we show that the unique Bayes-Nash equilibrium is where both devices spread their power equally across the entire bandwidth. We then extend this model to a two-tiered spectrum sharing case where users act sequentially. Here one of the devices, called the primary user, is the owner of the spectrum and it selects its power profile first. The second device (called the secondary user) then responds by choosing a power profile to maximize its Shannon capacity. In such sequential move games, we show that there exist equilibria in which the primary user obtains a higher data rate by using only a part of the bandwidth. In a repeated Bayesian interference game, we show the existence of reputation effects: an informed primary user can bluff to prevent spectrum usage by a secondary user who suffers from lack of information about the channel gains. The resulting equilibrium can be highly inefficient, suggesting that competitive spectrum sharing is highly suboptimal. In each country today, cellular networks operate on carefully separated frequency bands. This separation is imposed by the regulators of the given country to avoid interference between these networks. But, the separation is only valid within the borders of a country, hence the operators are left on their own to resolve cross-border interference of their cellular networks. In this paper, we focus on the scenario of two operators, each located on one side of the border. We assume that they want to fine-tune the emitting power of the pilot signals (i.e., beacon signals) of their base stations. This operation is crucial, because the pilot signal power determines the number of users they can attract and hence the revenue they can obtain. In the case of no power costs, we show that there exists a motivation for the operators to be strategic, meaning to fine-tune the pilot signal powers of their base stations. In addition, we study Nash equilibrium conditions in an empirical model and investigate the efficiency of the Nash equilibria for different user densities. Finally, we modify our game model to take power costs into account. The game with power costs corresponds to the well-known prisoner's dilemma: The players are still motivated to adjust their pilot powers, but their strategic behavior leads to a sub-optimal Nash equilibrium. * The first tutorial-style book that gives all the relevant theory at the right level of rigor, for the wireless communications engineer. * Bridges the gap between theory and practice by giving examples and case studies showing how game theory can solve real-word problems. * Contains algorithms and techniques to implement game theory in wireless terminals. Written by leading experts in the field, Game Theory and Learning for Wireless Networks Covers how theory can be used to solve prevalent problems in wireless networks such as power control, resource allocation or medium access control. With the emphasis now on promoting 'green' solutions in the wireless field where power consumption is minimized, there is an added focus on developing network solutions that maximizes the use of the spectrum available. With the growth of distributed wireless networks such as Wi-Fi and the Internet; the push to develop ad hoc and cognitive networks has led to a considerable interest in applying game theory to wireless communication systems. Game Theory and Learning for Wireless Networks is the first comprehensive resource of its kind, and is ideal for wireless communications R&D engineers and graduate students. Samson Lasaulce is a senior CNRS researcher at the Laboratory of Signals and Systems (LSS) at Suplec, Gif-sur-Yvette, France. He is also a part-time professor in the Department of Physics at cole Polytechnique, Palaiseau, France. Hamidou Tembine is a professor in the Department of Telecommunications at Suplec, Gif-sur-Yvette, France. Merouane Debbah is a professor at Suplec, Gif-sur-Yvette, France. He is the holder of the Alcatel-Lucent chair in flexible radio since 2007. The first tutorial style book that gives all the relevant theory, at the right level of rigour, for the wireless communications engineer Bridges the gap between theory and practice by giving examples and case studies showing how game theory can solve real world resource allocation problems Contains algorithms and techniques to implement game theory in wireless terminals We address the problem of spectrum pricing in a cognitive radio network where multiple primary service providers compete with each other to offer spectrum access opportunities to the secondary users. By using an equilibrium pricing scheme, each of the primary service providers aims to maximize its profit under quality of service (QoS) constraint for primary users. We formulate this situation as an oligopoly market consisting of a few firms and a consumer. The QoS degradation of the primary services is considered as the cost in offering spectrum access to the secondary users. For the secondary users, we adopt a utility function to obtain the demand function. With a Bertrand game model, we analyze the impacts of several system parameters such as spectrum substitutability and channel quality on the Nash equilibrium (i.e., equilibrium pricing adopted by the primary services). We present distributed algorithms to obtain the solution for this dynamic game. The stability of the proposed dynamic game algorithms in terms of convergence to the Nash equilibrium is studied. However, the Nash equilibrium is not efficient in the sense that the total profit of the primary service providers is not maximized. An optimal solution to gain the highest total profit can be obtained. A collusion can be established among the primary services so that they gain higher profit than that for the Nash equilibrium. However, since one or more of the primary service providers may deviate from the optimal solution, a punishment mechanism may be applied to the deviating primary service provider. A repeated game among primary service providers is formulated to show that the collusion can be maintained if all of the primary service providers are aware of this punishment mechanism, and therefore, properly weight their profits to be obtained in the future. This paper is concerned with the game theoretical approach in designing the multiuser downlink beamformers in multicell systems. Sharing the same physical resource, the base-station of each cell wishes to minimize its transmit power subject to a set of target signal-to-interference-plus-noise ratios (SINRs) at the multiple users in the cell. In this context, at first, the paper considers a strategic noncooperative game (SNG) where each base-station greedily determines its optimal downlink beamformer strategy in a distributed manner, without any coordination between the cells. Via the game theory framework, it is shown that this game belongs to the framework of standard functions. The conditions guaranteeing the existence and uniqueness of a Nash Equilibrium (NE) in this competitive design are subsequently examined. The paper then makes a revisit to the fully coordinated design in multicell downlink beamforming, where the optimal beamformers are jointly designed between the base-stations. A comparison between the competitive and coordinated designs shows the benefits of applying the former over the latter in terms of each design's distributed implementation. Finally, in order to improve the efficiency of the NE in the competitive design, the paper considers a more cooperative game through a pricing mechanism. The pricing consideration enables a base-station to steer its beamformers in a more cooperative manner, which ultimately limits the interference induced to other cells. The study on the existence and uniqueness of the new game's NE is then given. The paper also presents a condition on the pricing factors that allow the new NE point to approach the performance established by the coordinated design, while retaining the distributed nature of the multicell game. Small cells overlaid with macrocells can increase the capacity of two-tier cellular wireless networks by offloading traffic from macrocells. To motivate the small cell service providers (SSPs) to open portion of the access opportunities to macro users (i.e., to operate in a hybrid access mode), we design an incentive mechanism in which the macrocell service provider (MSP) could pay to the SSPs. According to the price offered by the MSP, the SSPs decide on the open access ratio , which is the ratio of shared radio resource for macro users and the total amount of radio resource in a small cell. The users in this two-tier network can make service selection decisions dynamically according to the performance satisfaction level and cost, which again depend on the pricing and spectrum sharing between the MSP and SSPs. To model this dynamic interactive decision problem, we propose a hierarchical dynamic game framework. In the lower level, we formulate an evolutionary game to model and analyze the adaptive service selection of users. An evolutionary stable strategy (ESS) is considered to be the solution of this game. In the upper level, the MSP and SSPs sequentially determine the pricing strategy and the open access ratio, respectively, taking into account the distribution of dynamic service selection at the lower-level evolutionary game. A Stackelberg differential game is formulated where the MSP and SSPs act as the leader and followers, respectively. An open-loop Stackelberg equilibrium is considered to be the solution of this game. We also extend the hierarchical dynamic game framework and investigate the impact of information delays on the equilibrium solutions. Numerical results show the effectiveness and advantages of dynamic control of the open access ratio and pricing. We consider the problem of two wireless networks operating on the same (presumably unlicensed) frequency band. Pairs within a given network cooperate to schedule transmissions, but between networks there is competition for spectrum. To make the problem tractable, we assume transmissions are scheduled according to a random access protocol where each network chooses an access probability for its users. A game between the two networks is defined. We characterize the Nash Equilibrium behavior of the system. Three regimes are identified: one in which both networks simultaneously schedule all transmissions, one in which the denser network schedules all transmissions and the sparser only schedules a fraction, and one in which both networks schedule only a fraction of their transmissions. The regime of operation depends on the path loss exponent α, the latter regime being desirable but attainable only for α > 4. This suggests that in certain environments, rival wireless networks may end up naturally cooperating. To substantiate our analytical results, we simulate a system where networks iteratively optimize their access probabilities in a greedy manner. We also discuss a distributed scheduling protocol that employs carrier sensing and demonstrate via simulations that again a near cooperative equilibrium exists for sufficiently large α. In Cognitive Radio Networks (CRN), there are multiple primary and secondary users in a region, and primaries can lease out their unused bandwidth to secondaries in exchange for a fee. This gives rise to price competition among the primaries, wherein each primary tries to attract secondaries by setting a lower price for its bandwidth than the other primaries. Radio spectrum has the distinctive feature that transmissions at neighboring locations on the same channel interfere with each other, whereas the same channel can be used at far-off locations without mutual interference. So in the above price competition scenario in a CRN, each primary must jointly select a set of mutually non-interfering locations within the region (which corresponds to an independent set in the conflict graph representing the region) at which to offer bandwidth and the price at each location. In this paper, we analyze this price competition scenario as a game and seek a Nash Equilibrium (NE). We identify a class of conflict graphs, which we refer to as mean valid graphs, such that the conflict graphs of a large number of topologies that commonly arise in practice are mean valid. We explicitly compute a symmetric NE in mean valid graphs and show that it is unique. The rapidly growing demand for wireless communication makes efficient power allocation a critical factor in the network's efficient operation. Power allocation in cellular networks with interference, where users are selfish, has been recently studied by pricing methods. However, pricing methods do not result in efficient optimal power allocations for such systems for the following reason. Because of interference, the communication between the Base Station (BS) and a given user is affected by that between the BS and all other users. Thus, the power vector consisting of the transmission power in each BS-user link can be viewed as a public good which simultaneously affects the utilities of all the users in the network. It is well known (Mas-, Microeconomic Theory, Oxford University Press, London, 2002, Chap. 11.C) that in public good economies, standard efficiency theorems on market equilibrium do not apply and pricing mechanisms do not result in globally optimal allocations. In this paper we study power allocation in the presence of interference for a single cell wireless Code Division Multiple Access (CDMA) network from a game theoretic perspective. We consider a network where each user knows only its own utility and the channel gain from the base station to itself. We formulate the uplink power allocation problem as a public good allocation problem. We present a game form the Nash Equilibria of which yield power allocations that are optimal solutions of the corresponding centralized uplink network. Dynamic spectrum access can significantly improve the spectrum utilization. For wireless service providers, the emergence of dynamic spectrum access brings new opportunities and challenges. The flexible spectrum acquisition gives a particular provider the chance to easily adapt its system capacity to fit end users' demand. However, the competition among several providers for both spectrum and end users complicates the situation. In this paper, we propose a general three-layer spectrum market model for the future dynamic spectrum access system, in which the interaction among spectrum holder, wireless service providers and end users are considered. We study a duopoly situation, where two wireless service providers participate in bandwidth competition in spectrum purchasing and price competition to attract end users, with the aim of maximizing their own profit. We believe we are the first one to explicitly study the relation of these two competitions in dynamic spectrum market. We formulate the wireless service providers' competition as a non-cooperative two-stage game. We first analyze the static game when full information is available for providers. Under general assumptions about the price and demand functions, a unique pure Nash equilibrium is identified as the outcome of the game, which shows the stability of the market. We further evaluate the market efficiency of the equilibrium in a symmetric case, and show that the gap with the social optimal is bounded within a small constant ratio. When the market information is limited, we provide myopically optimal adjustment algorithms for the providers. With such strategies, short term price updating converges to the Nash equilibrium of the given subgame, while long term bandwidth updating converges to a point close to the Nash equilibrium of the full game. In the future, we can expect to see more dynamic service offerings and profiles, as users move from long-term service provider agreements to more opportunistic service models. Moreover, when the radio spectrum is itself traded in a market- based scenario, wireless service providers (WSPs) will likely require new strategies to deploy services, define service profiles, and price them. Currently, there is little understanding on how such a dynamic trading system will operate so as to make the system feasible under economic terms. From an economic point of view, we analyze two main components of this overall trading system: (i) spectrum allocation to WSPs and (ii) interaction of end users with the WSPs. For this two-tier trading system, we present a winner determining sealed-bid knapsack auction mechanism that dynamically allocates spectrum to the WSPs based on their bids. We propose a dynamic pricing strategy based on game theory to capture the conflict of interest between WSPs and end users, both of whom try to maximize their respective net utilities. We show that even in such a greedy and non-cooperative behavioral game model, it is in the best interest of the WSPs to adhere to a price threshold which is a consequence of a price equilibrium in an oligopoly situation. Through simulation results, we show that the proposed auction entices the WSPs to participate in the auction, makes optimal use of the common spectrum pool, and avoids collusion among WSPs. Moreover, numerical results demonstrate how pricing can be used as an effective tool for providing incentives to the WSPs to upgrade their network resources and offer better services. We study bandwidth allocation at base stations of a wireless network as a non-cooperative game between different wireless users. A user demands bandwidth from the base stations it has access to by submitting bids. Once the bidding process is complete, a base station distributes its bandwidth to the users in proportion to their bids. Users are assumed to be budget constrained and price anticipating, and split their wealth across base stations so as to maximize their individual bandwidths. In this paper, we study the properties of Nash Equilibrium (NE) for this bandwidth allocation game. For the special case where each user can access all base stations, we argue that there exists a unique NE, at which the bandwidth obtained by any user is proportional to its wealth. For a more general scenario where a user may be able to access only a subset of all base stations, we compare the NE of the game to the max-min fair bandwidth allocation. We show that although the NE may not be max-min fair in general, the bandwidth allocation at NE becomes arbitrarily close to max-min fair allocation as the number of users is increased, while keeping the number of base stations fixed. In recent years, to satisfy people's need for wireless services, the number of access points of the 3G-based systems, WiFi and WiMAX has been increased exponentially by wireless service providers (WSPs). As a result, there are many WSPs coexisting in the same hotspot area, which drives price competition among WSPs. Existing researche shows that each WSP will lower its price to increase revenue or market share, and this kind of price competition will eventually damage every WSP with the revenue decrease. However in this paper, we show that there is another type of price competition, where the WSPs' decreasing or increasing price levels occurs periodically and there is no equilibrium point. We illustrate it by using an example of the duopoly price competition and suggest a simple regulation rule that leads to an equilibrium point. Moreover, we show that the equilibrium point is Pareto-optimal and is well balanced in the aspects of total revenue, fairness and social welfare.