Agent-based modeling of the cooperative spectrum management with insurance in cognitive radio networks

We propose and numerically analyze an agent-based simulation model of the spectrum frequency trading mechanism, where the heterogeneous agents take on the role of primary users. The interactions with the demand of the secondary users are considered. The model is constructed on the basis of Bak-Sneppen model of coevolution where the extremal dynamics is used to activate the low profitable users. Here, the strategies of the primary users are coevolving. They are characterized by the spectrum prices and cooperation intensity levels. The primary users interact indirectly by means of the demand stimulation of the secondary users and an insurance pool, which is provided by the spectrum exchange management system. The existence of the insurance pool is motivated by the needs of avoidance of the financial losses. The simulation results indicate the reliability of the insurance mechanism. In addition, several notable phenomena have emerged from the interactions of agents. The price increase resulting from the spontaneously formed oligopolistic practices of agents is considered as the most emergent feature of the model.