Auction design for spectrum allocation under interference constraints

This paper introduces Truthful Multichannel Auction (TMCA), an auction design for the allocation of wireless channels to several bidders with private information about their channel valuation. Channel allocations are subject to interference constraints in the form of a conflict graph. In contrast to other channel auctions, TMCA allows for variable (instead of fixed) marginal valuations. In TMCA, it is a dominant strategy for bidders to truthfully reveal their channel valuations, which in turn guarantees the implementation of highly efficient allocations in polynomial time. This paper also shows the expected revenue of the auctioneer can be maximized by imposing a reserve price.