TY - GEN
T1 - Pareto efficiency of pricing-based power control in wireless data networks
AU - Saraydar, Cem U.
AU - Mandayam, Narayan B.
AU - Goodman, David J.
N1 - Publisher Copyright:
© 1999 IEEE.
PY - 1999
Y1 - 1999
N2 - Recent work has considered power control for wireless data networks from the framework of microeconomics. The user preferences have been mapped to utility functions measured in useful bits transmitted per unit of battery energy. We consider utility maximizing distributed power control in the presence of pricing and study the existence and efficiency of equilibria achieved. Specifically, we investigate the Pareto efficiency of a pricing policy that punishes asocial behavior in terms of the transmit power used by each user and hence the interference caused by it. The Nash equilibria achieved under pricing are characterized by using supermodularity. We propose a simple implementation of the pricing scheme where the base station broadcasts a pricing parameter that users use in their distributed power control algorithm. With the appropriate choice of the pricing parameter, all users increase their utilities significantly as compared to the case where there is no pricing. We also discuss the implication of pricing with regard to achieving a socially optimum operating point.
AB - Recent work has considered power control for wireless data networks from the framework of microeconomics. The user preferences have been mapped to utility functions measured in useful bits transmitted per unit of battery energy. We consider utility maximizing distributed power control in the presence of pricing and study the existence and efficiency of equilibria achieved. Specifically, we investigate the Pareto efficiency of a pricing policy that punishes asocial behavior in terms of the transmit power used by each user and hence the interference caused by it. The Nash equilibria achieved under pricing are characterized by using supermodularity. We propose a simple implementation of the pricing scheme where the base station broadcasts a pricing parameter that users use in their distributed power control algorithm. With the appropriate choice of the pricing parameter, all users increase their utilities significantly as compared to the case where there is no pricing. We also discuss the implication of pricing with regard to achieving a socially optimum operating point.
UR - http://www.scopus.com/inward/record.url?scp=84907563465&partnerID=8YFLogxK
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U2 - 10.1109/WCNC.1999.797821
DO - 10.1109/WCNC.1999.797821
M3 - Conference contribution
AN - SCOPUS:84907563465
T3 - IEEE Wireless Communications and Networking Conference, WCNC
SP - 231
EP - 235
BT - 1999 IEEE Wireless Communications and Networking Conference, WCNC
PB - Institute of Electrical and Electronics Engineers Inc.
T2 - 1st IEEE Annual Wireless Communications and Networking Conference, WCNC 1999
Y2 - 21 September 1999 through 24 September 1999
ER -