Cooperation in wireless ad hoc networks: a market-based approach

We consider a market-based approach to stimulate cooperation in ad hoc networks where nodes charge a price for relaying data packets. Assuming that nodes set prices to maximize their own net benefit, we characterize the equilibria of the resulting market. In addition, we propose an iterative algorithm for the nodes to adapt their price and rate allocation, and study its convergence behavior. We use a numerical case study to illustrate our results.