Abstract
We propose and numerically analyze an agent-based simulation model of the spectrum frequency trading mechanism, where the heterogeneous agents take on the role of primary users. The interactions with the demand of the secondary users are considered. The model is constructed on the basis of Bak-Sneppen model of coevolution where the extremal dynamics is used to activate the low profitable users. Here, the strategies of the primary users are coevolving. They are characterized by the spectrum prices and cooperation intensity levels. The primary users interact indirectly by means of the demand stimulation of the secondary users and an insurance pool, which is provided by the spectrum exchange management system. The existence of the insurance pool is motivated by the needs of avoidance of the financial losses. The simulation results indicate the reliability of the insurance mechanism. In addition, several notable phenomena have emerged from the interactions of agents. The price increase resulting from the spontaneously formed oligopolistic practices of agents is considered as the most emergent feature of the model.
Highlights
The frequency spectrum is a highly limited and an essential resource of wireless communication
6 Conclusions The emergence of the structures, patterns and unexpected properties, which cannot be directly deduced from the properties of the system definition, represents one of the strongest motivations that led us to perform an extensive agent-based simulation of the cognitive radio model supplemented with insurance service
In agreement with previous studies of the cognitive radio networks, we confirm that price of the service should increase with the level of cooperation, which leads to the higher costs for secondary users (SUs)
Summary
The frequency spectrum is a highly limited and an essential resource of wireless communication. The most significant is the interaction between PUs mediated by the demand of the SUs. Its variability causes the changes in profit, which stimulate Bak-Sneppen mechanism to modify the spectrum prices and levels of cooperation. Its variability causes the changes in profit, which stimulate Bak-Sneppen mechanism to modify the spectrum prices and levels of cooperation Another important contribution of the paper is the application of the insurance mechanism in the spectrum trading market. Let us assume that actual cooperation levels (characterized by col, see section ‘Insurance fee’ for details) of PUs are stored on the side of the spectrum exchange server Using this specific information, the spectrum exchange server ‘decides’ between the asking for an insurance fee or providing an adequate financial compensation. Let us emphasize that the mentioned size differences are not present in the original Bak-Sneppen model
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