An Optimal Spectrum Allocation Strategy for Dynamic Spectrum Markets

Dynamic spectrum markets for future wireless network devices will involve complex spectrum transactions. The spatio-temporal spectrum availability and the existence in the market of many diverse players with different power limit and channel bandwidth requirements, calls for new ways of allocating the spectrum [1]. Due to its perceived fairness and allocation efficiency, an auction strategy has been advocated as the best strategy for dynamic spectrum markets. However, designing an auction mechanism for a dynamic spectrum market is challenging because of the nature of the spectrum involved and the diverse secondary users, i.e., network players, involved, resulting into an auction mechanism with many complementary requirements. Many attempts from researchers result into spectrum auctions that meet only a few of these requirements. In this paper, a three-stage spectrum auction that not only meet most of these requirements but also ensures optimal spectrum allocation, is proposed.