Achieving an Efficient and Fair Equilibrium Through Taxation

It is well known that a game equilibrium can be far from efficient or fair, due to the misalignment between individual and social objectives. The focus of this paper is to design a new mechanism framework that induces an efficient and fair equilibrium in a general class of games. To achieve this goal, we propose a taxation framework, which first imposes a tax on each player based on the perceived payoff (income), and then redistributes the collected tax to other players properly. By turning the tax rate, this framework spans the continuum space between strategic interactions (of selfish players) and altruistic interactions (of unselfish players), hence provides rich modeling possibilities. The key challenge in the design of this framework is the proper taxing rule (i.e., the tax exemption and tax rate) that induces the desired equilibrium in a wide range of games. First, we propose a flat tax rate (i.e., a single tax rate for all players), which is necessary and sufficient for achieving an efficient equilibrium in any static strategic game with common knowledge. Then, we provide several tax exemption rules that achieve some typical fairness criterions (such as the Max-min fairness) at the equilibrium. We further illustrate the implementation of the framework in the game of Prisoners' Dilemma.Comment: This manuscript serves as the technical report for the paper with the same title published in APCC 201

HySIM: A Hybrid Spectrum and Information Market for TV White Space Networks

We propose a hybrid spectrum and information market for a database-assisted TV white space network, where the geo-location database serves as both a spectrum market platform and an information market platform. We study the inter- actions among the database operator, the spectrum licensee, and unlicensed users systematically, using a three-layer hierarchical model. In Layer I, the database and the licensee negotiate the commission fee that the licensee pays for using the spectrum market platform. In Layer II, the database and the licensee compete for selling information or channels to unlicensed users. In Layer III, unlicensed users determine whether they should buy the exclusive usage right of licensed channels from the licensee, or the information regarding unlicensed channels from the database. Analyzing such a three-layer model is challenging due to the co-existence of both positive and negative network externalities in the information market. We characterize how the network externalities affect the equilibrium behaviours of all parties involved. Our numerical results show that the proposed hybrid market can improve the network profit up to 87%, compared with a pure information market. Meanwhile, the achieved network profit is very close to the coordinated benchmark solution (the gap is less than 4% in our simulation).Comment: This manuscript serves as the online technical report of the article published in IEEE International Conference on Computer Communications (INFOCOM), 201

Providing Long-Term Participation Incentive in Participatory Sensing

Providing an adequate long-term participation incentive is important for a participatory sensing system to maintain enough number of active users (sensors), so as to collect a sufficient number of data samples and support a desired level of service quality. In this work, we consider the sensor selection problem in a general time-dependent and location-aware participatory sensing system, taking the long-term user participation incentive into explicit consideration. We study the problem systematically under different information scenarios, regarding both future information and current information (realization). In particular, we propose a Lyapunov-based VCG auction policy for the on-line sensor selection, which converges asymptotically to the optimal off-line benchmark performance, even with no future information and under (current) information asymmetry. Extensive numerical results show that our proposed policy outperforms the state-of-art policies in the literature, in terms of both user participation (e.g., reducing the user dropping probability by 25% to 90%) and social performance (e.g., increasing the social welfare by 15% to 80%).Comment: This manuscript serves as the online technical report of the article published in IEEE International Conference on Computer Communications (INFOCOM), 201

Combining Spot and Futures Markets: A Hybrid Market Approach to Dynamic Spectrum Access

Dynamic spectrum access is a new paradigm of secondary spectrum utilization and sharing. It allows unlicensed secondary users (SUs) to exploit opportunistically the under-utilized licensed spectrum. Market mechanism is a widely-used promising means to regulate the consuming behaviours of users and, hence, achieves the efficient allocation and consumption of limited resources. In this paper, we propose and study a hybrid secondary spectrum market consisting of both the futures market and the spot market, in which SUs (buyers) purchase under-utilized licensed spectrum from a spectrum regulator, either through predefined contracts via the futures market, or through spot transactions via the spot market. We focus on the optimal spectrum allocation among SUs in an exogenous hybrid market that maximizes the secondary spectrum utilization efficiency. The problem is challenging due to the stochasticity and asymmetry of network information. To solve this problem, we first derive an off-line optimal allocation policy that maximizes the ex-ante expected spectrum utilization efficiency based on the stochastic distribution of network information. We then propose an on-line VickreyCClarkeCGroves (VCG) auction that determines the real-time allocation and pricing of every spectrum based on the realized network information and the pre-derived off-line policy. We further show that with the spatial frequency reuse, the proposed VCG auction is NP-hard; hence, it is not suitable for on-line implementation, especially in a large-scale market. To this end, we propose a heuristics approach based on an on-line VCG-like mechanism with polynomial-time complexity, and further characterize the corresponding performance loss bound analytically. We finally provide extensive numerical results to evaluate the performance of the proposed solutions.Comment: This manuscript is the complete technical report for the journal version published in INFORMS Operations Researc