Dynamic spectrum sharing game by lease

We propose and analyze a dynamic implementation of the property-rights model of cognitive radio. A primary link has the possibility to lease the owned spectrum to a MAC network of secondary nodes, in exchange for cooperation in the form of distributed space-time coding (DSTC). The cooperation and competition between the primary and secondary network are cast in the framework of sequential game. On one hand, the primary link attempts to maximize its quality of service in terms of signal-to-interference-plus-noise ratio (SINR); on the other hand, nodes in the secondary network compete for transmission within the leased time-slot following a power control mechanism. We consider both a baseline model with complete information and a more practical version with incomplete information, using the backward induction approach for the former and providing approximate algorithm for the latter. Analysis and numerical results show that our models and algorithms provide a promising framework for fair and effective spectrum sharing, both between primary and secondary networks and among secondary nodes.