Contract-based cooperative spectrum sharing

Providing proper economic incentives is essential for the success of dynamic spectrum sharing. Cooperative spectrum sharing is one effective way to achieve this goal. In cooperative spectrum sharing, secondary users (SUs) relay traffics for primary users (PUs), in exchange for dedicated transmission time for the SUs´ own communication needs. In this paper, we study the cooperative spectrum sharing under incomplete information, where SUs´ types (which capture the relay channel gains and the SUs´ power costs) are private information and are not known to the PU. Inspired by the contract theory, we model the network as a labor market. The PU is an employer who offers a contract to the SUs. The contract consists of a set of items representing combinations of spectrum access time (i.e., reward) and relay power (i.e., contribution). The SUs are employees, and each of them selects the best contract item to maximize its payoff. We study the optimal contract design for both weakly and strongly incomplete information scenarios. First, we provide necessary and sufficient conditions for feasible contracts in both scenarios. In the weakly incomplete information scenario, we further derive the optimal contract that achieves the same maximum PU´s utility as in the complete information benchmark. In the strongly incomplete information scenario, we propose a Decompose-and-Compare algorithm that achieves a close-to-optimal contract. We further show that the PU´s expected utility loss due to the suboptimal algorithm and the strongly incomplete information are both relatively small (less than 2% and 1.3%, respectively, in our numerical results with two SU types).