Truthful Prioritization Schemes for Spectrum Sharing

Abstract

As the rapid expansion of smart phones and associated data-intensive applications continues, we expect to see renewed interest in dynamic prioritization schemes as a way to increase the total utility of a heterogeneous user base, with each user experiencing variable demand and value for access. We adapt a recent sampled-based mechanism for resource allocation to this setting, which is more effective in aligning incentives in a setting with variable demand than an earlier method for pricing network resources due to Varian and Mackie-Mason (1994). Complementing our theoretical analysis, which also considers incentives on the sell-side of the market, we present the results of a simulation study, confirming the effectiveness of our protocol in aligning incentives and boosting welfare.