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A truthful ascending auction mechanism for dynamic allocation of LSA spectrum blocks

Author

Listed:
  • Ayman Chouayakh

    (Orange Labs)

  • Aurélien Bechler

    (Orange Labs)

  • Isabel Amigo

    (IMT Atlantique)

  • Loutfi Nuaymi

    (IMT Atlantique)

  • Patrick Maillé

    (IMT Atlantique)

Abstract

Licensed Shared Access (LSA) is a new sharing approach that aims to optimize the use of the 2.3-2.4 Ghz frequency band in order to support the deployment of 5G systems. Under LSA, Mobile Network Operators (MNOs) can share the 2.3-2.4 band with the incumbent of that band under some guarantees, specified in a license attributed by the regulator. In this paper, we focus on ascending auctions to allocate and price licenses. We first show how to implement an ascending version of the well-known Vickrey-Clarke-Groves (VCG) mechanism in the LSA context, but highlight that it may introduce some computational complexity problems. We therefore propose another ascending mechanism, called C-LSA, based on the clinching approach. We also design the one-shot equivalent (in terms of allocations and payments) of C- LSA that we use to compare the performance of VCG and C-LSA through simulations. Our simulations suggest that C-LSA is an interesting candidate to allocate LSA licenses, since the mechanism yields considerably larger revenues than VCG, for a very limited loss of allocation efficiency (around 4%).

Suggested Citation

  • Ayman Chouayakh & Aurélien Bechler & Isabel Amigo & Loutfi Nuaymi & Patrick Maillé, 2021. "A truthful ascending auction mechanism for dynamic allocation of LSA spectrum blocks," Netnomics, Springer, vol. 22(1), pages 27-52, June.
    • Handle: RePEc:kap:netnom:v:22:y:2021:i:1:d:10.1007_s11066-021-09147-x
    DOI: 10.1007/s11066-021-09147-x
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    References listed on IDEAS

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    1. Edward Clarke, 1971. "Multipart pricing of public goods," Public Choice, Springer, vol. 11(1), pages 17-33, September.
    2. Mishra, Debasis & Parkes, David C., 2007. "Ascending price Vickrey auctions for general valuations," Journal of Economic Theory, Elsevier, vol. 132(1), pages 335-366, January.
    3. Lawrence M. Ausubel, 2004. "An Efficient Ascending-Bid Auction for Multiple Objects," American Economic Review, American Economic Association, vol. 94(5), pages 1452-1475, December.
    4. Groves, Theodore, 1973. "Incentives in Teams," Econometrica, Econometric Society, vol. 41(4), pages 617-631, July.
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