Spectrum auction is considered as a suitable approach to efficiently allocate spectrum among unlicensed users. However, in previous studies of spectrum auction, competition can hardly be reflected in the traditional spectrum allocation and the spectrum efficiency is still not high after the allocation. In this paper, we enhance the factor of competition in the auctions, in which bidders need to pay for the competition and the interference to macro cell users (MUs). We consider a communication system with one macro cell and several small cells, thus a licensed radio spectrum is shared by both MUs and small cell users (SUs). A truthful auction algorithm is proposed for spectrum allocation and the spectrum is divided into multiple channels in different time slots, so that SUs can make their choice for bidding under the guidance of history. In order to raise the communication quality, we propose a power control and beamforming algorithm in the heterogeneous network to enhance the system performance. Simulation results are presented to verify the effectiveness of the proposed algorithm in the small cell network.
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