A comprehensive spectrum trading scheme based on market competition, reputation and buyer specific requirements

In the exclusive-use model of spectrum trading, cognitive radio devices or secondary users can buy spectrum resources from licensed users or primary users for a short or long period of time. Considering such spectrum access, a trading model is introduced where a buyer can select a set of candidate sellers based on their reputation and their offers in fulfilling its requirements, namely, offered signal quality, contract duration, coverage and bandwidth. Similarly, a seller can assess a buyer as a potential trading partner considering the buyer’s reliability, which the seller can derive from the buyer’s reputation and financial profile. In our scheme, seller reputation or buyer reliability can be either obtained from a reputation brokerage service, if one exists, or calculated using our model. Since in a competitive market, the price of a seller depends on that of other sellers, game theory is used to model the competition among multiple sellers. An optimization technique is used by a buyer to select the best seller(s) and optimize purchase to maximize its utility. This may result in buying from multiple sellers of certain amount of bandwidth from each, depending on price and meeting requirements and budget constraints. Stability of the model is analyzed and performance evaluation shows that it benefits sellers and buyers in terms of profit and throughput, respectively.