Optimal Auction Mechanism for Spectrum Allocation in Cognitive Radio Networks under Uncertain Spectrum Availability

In this paper, we consider the problem of dynamic spectrum allocation in cognitive radio (CR) networks and propose a new sealed-bid auction framework to address the spectrum allocation problem when the spectrum is not available with certainty. In our model, we assume that the moderator plays the dual role of being a fusion center (FC) for spectrum sensing and an auctioneer for spectrum allocation where it attempts to maximize its utility. We also consider the cost of collisions with the primary user (PU) and assign this cost to the FC, making it completely responsible for its allocation decision. With the help of CRs participating in the network, the FC makes a global inference on the availability of the spectrum followed by spectrum allocation. We investigate the optimal auction-based framework for spectrum allocation and also investigate the conditions under which such an auction is feasible. Note that the optimal auction forces the moderator to compensate the CRs for the sensing cost that they incur. Some numerical examples are presented for illustration. Index Terms Cognitive Radio Networks, Spectrum Availability Uncertainty, Auctions, Spectrum Allocation, Spectrum Sensing.