An Integrated Spectrum and Information Market for Green Cognitive Communications

Abstract: A database-assisted TV white space network can achieve the goal of green cognitive communication by effectively reducing the energy consumption in cognitive communications. The success of such a novel network relies on a proper business model that provides incentives for all parties involved. In this paper, we propose an integrated spectrum and information market for a database-assisted TV white space network, where the geo-location database serves as both the spectrum market platform and the information market platform. We study the interactions among the database, the spectrum licensee, and unlicensed users by modelling the system as a three-stage sequential decision process. In Stage I, the database and the licensee negotiate regarding the commission for the licensee to use the spectrum market platform. In Stage II, the database and the licensee compete for selling information or channels to unlicensed users. In Stage III, unlicensed users determine whether they should buy exclusive usage right of licensed channels from the licensee or information regarding unlicensed channels from the database. Analyzing such a three-stage model is challenging due to the co-existence of both positive and negative network externalities in the information market. Despite of this, we are able to characterize how the network externalities affect the equilibrium behaviors of all parties involved. We analytically show that in this integrated market, the licensee can never get a market share more than half. Our numerical results further show that the proposed integrated market can improve the network profit up to 87%, compared with a pure information market.