Optimal Pricing for Dynamic Bandwidth Trading with Incomplete Information

• Main Authors: Ming-Lung Lu, 呂明龍
• Other Authors: Yeali S. Sun
• Format: Others
• Language: en_US
• Published: 2011
• Online Access: http://ndltd.ncl.edu.tw/handle/96236543994377765784

碩士 === 國立臺灣大學 === 資訊管理學研究所 === 99 === The wireless spectrum is a limited resource. The concepts of cognitive radio and dynamic spectrum allocation (DSA) have been considered as a possible mechanism to improve the efficiency of bandwidth usage and solve the bandwidth deficiency problem. In this work, we consider a wireless network access environment comprised of a mobile network operator (MNO) and a distribution of different types of mobile virtual network operators (MVNOs). We propose an open dynamic bandwidth trading model that comprises of two phases. The goal of the phase one is to find out the distribution of the buying preferences or types of the participating MVNOs through a sequence of interactive rounds and compute the optimal price schedule for the unused bandwidth for sale. The derivation of the optimal price schedule also considers the demand and utility functions of the MVNOs. Most importantly, the optimal price schedule satisfies the incentive compatible (IC) and the individually rational (IR) constraints. The former ensures that the quantity-price pair designed for MVNO of a specific type will choose the pair that maximizes its utility; while the latter assures that the pairs cause non-negative utility. We also give an algorithm to convert the continuous optimal price schedule to a discrete one so as to provide a simple easy-to-read format for MVNOs’ selection while ensuring that individual type of MVNOs will choose the pair whose corresponding utility value is closest to the value in the original function. After the iterative process converges and terminates, if the total number of bandwidth requests exceeds the total capacity constraint, the process proceeds to address the finite capacity constraint by solving a bounded knapsack problem for final bandwidth allocation. Lastly, an example is provided to explain how the proposed open dynamic bandwidth trading process with optimal incentive-compatible price schedule is derived.