The value of Side Information in Secondary Spectrum Markets

TL;DR

This paper analyzes how acquiring channel state information (C-CSI) affects primary users' strategies and payoffs in secondary spectrum markets, revealing counterintuitive effects of estimation errors and acquisition costs.

Contribution

It provides a game-theoretic framework for understanding the strategic value of C-CSI acquisition, including cases with imperfect information and asymmetric costs.

Findings

Payoff is independent of C-CSI cost in the perfect information case.

Estimation errors can increase primary payoffs.

Lower C-CSI costs may decrease payoffs when availabilities differ.

Abstract

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.