Revenue Maximization in Spectrum Auctions for Dynamic Spectrum Access

Abstract: We investigate revenue maximization problems in auctions for dynamic spectrum access. We consider the frequency division and spread spectrum methods of dynamic spectrum sharing. In the frequency division method, a primary spectrum user allocates portions of spectrum to different secondary users. In the spread spectrum method, the primary user allocates transmission powers to each secondary user. In both cases, we assume that a secondary user's utility function is linear in the rate it can achieve by using the available spectrum/power. Assuming strategic users, we present incentive compatible, individually rational and revenue-maximizing mechanisms for the two scenarios.