Pareto efficiency of pricing-based power control in wireless data networks

Cem U. Saraydar, Narayan Mandayam, David J. Goodman

Research output: Chapter in Book/Report/Conference proceedingConference contribution

52 Scopus citations

Abstract

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.

Original languageEnglish (US)
Title of host publication1999 IEEE Wireless Communications and Networking Conference, WCNC
PublisherInstitute of Electrical and Electronics Engineers Inc.
Pages231-235
Number of pages5
ISBN (Electronic)0780356683
DOIs
StatePublished - Jan 1 1999
Event1st IEEE Annual Wireless Communications and Networking Conference, WCNC 1999 - New Orleans, United States
Duration: Sep 21 1999Sep 24 1999

Publication series

NameIEEE Wireless Communications and Networking Conference, WCNC
Volume1
ISSN (Print)1525-3511

Other

Other1st IEEE Annual Wireless Communications and Networking Conference, WCNC 1999
CountryUnited States
CityNew Orleans
Period9/21/999/24/99

All Science Journal Classification (ASJC) codes

  • Engineering(all)

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