Duopoly Price Competition in Secondary Spectrum Markets

In this paper, we consider the problem of spectrum sharing in a Cognitive Radio Network (CRN) with spectrum holder, two secondary operators and secondary users (SUs). In the system model under consideration, the spectrum allocated to the two secondary operators can be shared by SUs, which means that secondary operators buy spectrum from spectrum holder and then sell spectrum access service to SUs. We model the relationship between secondary operators and SUs as a two-stage stackelberg game, where secondary operators make spectrum channel quality and price decisions in the first stage, and then the SUs make their spectrum demands decisions. The backward induction method is employed to solve the stackelberg game. Numerical results are performed to evaluate our analysis.