ML p(r)ior | The value of Side Information in Secondary Spectrum Markets

The value of Side Information in Secondary Spectrum Markets

2016-02-02
In a secondary spectrum market primaries set prices for their unused channels to the secondaries. The payoff of a primary depends on the availability of unused channels of its competitors. We consider a model were a primary can acquire its competitor's channel state information (C-CSI) at a cost. We formulate a game between two primaries where each primary decides whether to acquire C-CSI or not and then selects its price based on that. We first characterize the Nash Equilibrium (NE) of this game for a symmetric model where the C-CSI is perfect. We show that the payoff of a primary is independent of the C-CSI acquisition cost. We then generalize our analysis to allow for imperfect estimation and cases where the two primaries have different C-CSI costs or different channel availabilities. Our results show interestingly that the payoff of a primary increases when there is estimation error. We also show that surprisingly, the expected payoff of a primary may decrease when the C-CSI acquisition cost decreases when primaries have different availabilities.
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