Trade information, not spectrum: A novel TV white space information market model

In this paper, we propose a novel information market for TV white space networks, where the spectrum database operator sells the information regarding TV white space to secondary users. Different from the traditional spectrum market, the information market processes the unique property of positive externality, as more users purchasing the information service will increase the value of the service to each buyer. We systematically characterize the market equilibrium and the database operator´s optimal information pricing strategy. Specifically, we first study how the market share dynamically evolves over time and eventually converge to a market equilibrium. We show that the market equilibrium increases with the initial market share, and there exist several tipping points of the initial market share, around which a slight change will lead to a significant change on the emerging market equilibrium. Based on the market equilibrium analysis, we further study the impact of the database operator´s information pricing strategy on the market equilibrium, and derive the optimal information price that maximizes the database operator´s revenue. Theoretical analysis and numerical result indicate that this is a promising business model for creating incentives for the database operator in TV white space networks.