Dynamic Bayesian Spectrum Bargaining with Non-myopic Users

Yang Yan, Jianwei Huang, Ming Zhao, Jing Wang

Abstract: In this paper, we investigate a cooperative spectrum sharing mechanism realized by a dynamic Bayesian spectrum bargaining between a pair of non-myopic primary user and secondary user. The primary user has only incomplete information of the secondary user’s energy cost. We model such a bargaining process as a dynamic Bayesian game, and discuss the equilibria under all possible system parameters. Furthermore, we discuss in details the sequential equilibrium where the reputation effect plays an important role. Our analysis shows that the secondary user with a low energy cost can exploit the primary user’s lack of complete information for its own benefits.