Efficient and optimal mechanisms with radio spectrum sharing

Chenglin Zhang, Lixin Ye, Joel Johnson, Christopher Baker and Huaiyi Wang

International Journal of Industrial Organization, 2018, vol. 60, issue C, 206-227

Abstract: Optimal mechanism design with spectrum sharing differs from the traditional setting mainly in that some technological constraints (e.g., non-interference constraints) need to be taken into account explicitly. In this paper we characterize surplus-maximizing (efficient) and revenue-maximizing (optimal) mechanisms in a spectrum sharing context where a principal allocates transmitted power among a group of potentially interested users (transmitter-receiver pairs). Under regularity conditions about value distributions and non-interference constraints, we show that efficiency (optimality) typically involves spectrum sharing by multiple users, and the exact allocation of transmitted power is determined such that the ratio of marginal value (virtual value) over marginal cost (in terms of the cost to the interference generated) is equal among all shared users. We show that efficient and optimal mechanisms in our setting are actually dominant-strategy incentive compatible, and that they can also be implemented by well-designed all-pay or discriminatory-price auctions.

Keywords: Spectrum sharing; Spectrum sharing mechanisms; Efficiency; Optimality (search for similar items in EconPapers)
JEL-codes: D44 D82 L52 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0167718718300171
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:indorg:v:60:y:2018:i:c:p:206-227

DOI: 10.1016/j.ijindorg.2018.08.004

Access Statistics for this article

International Journal of Industrial Organization is currently edited by P. Bajari, B. Caillaud and N. Gandal

More articles in International Journal of Industrial Organization from Elsevier
Bibliographic data for series maintained by Catherine Liu ().