Interference Pricing for Device-to-Device Communications

In this paper, we propose a pricing framework for interference management in device-to-device (D2D) underlaying cellular networks, where the base station (BS) protects itself by pricing the cross-tier interference caused from the D2D users. A Stackelberg game is formulated to model the interactions between the BS and D2D users. Specifically, the BS sets prices to a maximize its revenue subject to an interference temperature constraint. For given specified prices, the D2D users competitively adapt power allocation strategies for their individual utility maximization. We first analyze the competition among the D2D users by noncooperative game theory and an iterative based distributed power allocation algorithm is proposed. Then, depending on how much network information the BS knows, we develop two pricing algorithms, i.e., uniform pricing with limited network information and differentiated pricing with global network information.