Optimal dynamic contract for spectrum reservation in mission-critical UNB-IoT systems

Muhammad Junaid Farooq, Quanyan Zhu

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

Abstract

Spectrum reservation is emerging as one of the potential solutions to cater for the communication needs of massive number of wireless Internet of Things (IoT) devices with reliability constraints particularly in mission-critical scenarios. In most mission-critical systems, the true utility of a reservation may not be completely known ahead of time as the unforseen events might not be completely predictable. In this paper, we present a dynamic contract approach where an advance payment is made at the time of reservation based on partial information about spectrum reservation utility. Once the complete information is obtained, a rebate on the payment is made if the reservation is released. In this paper, we present a contract theoretic approach to design an incentivized mechanism that coerces the applications to reveal their true application type resulting in greater profitability of the IoT network operator. The operator offers a menu of contracts with advanced payments and rebate to the IoT applications without having knowledge about the types of applications. The decision of the applications in selecting a contract leads to a revelation of their true type to the operator which allows it to generate higher profits than a traditional spectrum auction mechanism. Under some assumptions on distribution of the utility of the applications, closed form solutions for the optimal dynamic spectrum reservation contract are provided and the sensitivity against system parameters is analyzed.

Original languageEnglish (US)
Title of host publication2018 16th International Symposium on Modeling and Optimization in Mobile, Ad Hoc, and Wireless Networks, WiOpt 2018
PublisherInstitute of Electrical and Electronics Engineers Inc.
ISBN (Electronic)9783903176003
DOIs
StatePublished - May 22 2018
Event16th International Symposium on Modeling and Optimization in Mobile, Ad Hoc, and Wireless Networks, WiOpt 2018 - Shanghai, China
Duration: May 7 2018May 11 2018

Other

Other16th International Symposium on Modeling and Optimization in Mobile, Ad Hoc, and Wireless Networks, WiOpt 2018
CountryChina
CityShanghai
Period5/7/185/11/18

Fingerprint

Internet of Things
Reservation
Profitability
Operator
Partial Information
Auctions
Closed-form Solution
Profit
Internet of things
Scenarios
Communication

Keywords

  • contract
  • information asymmetry
  • Internet of things
  • mission-critical
  • sequential screening
  • ultra narrow band

ASJC Scopus subject areas

  • Computer Networks and Communications
  • Hardware and Architecture
  • Control and Optimization
  • Modeling and Simulation

Cite this

Farooq, M. J., & Zhu, Q. (2018). Optimal dynamic contract for spectrum reservation in mission-critical UNB-IoT systems. In 2018 16th International Symposium on Modeling and Optimization in Mobile, Ad Hoc, and Wireless Networks, WiOpt 2018 Institute of Electrical and Electronics Engineers Inc.. https://doi.org/10.23919/WIOPT.2018.8362861

Optimal dynamic contract for spectrum reservation in mission-critical UNB-IoT systems. / Farooq, Muhammad Junaid; Zhu, Quanyan.

2018 16th International Symposium on Modeling and Optimization in Mobile, Ad Hoc, and Wireless Networks, WiOpt 2018. Institute of Electrical and Electronics Engineers Inc., 2018.

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

Farooq, MJ & Zhu, Q 2018, Optimal dynamic contract for spectrum reservation in mission-critical UNB-IoT systems. in 2018 16th International Symposium on Modeling and Optimization in Mobile, Ad Hoc, and Wireless Networks, WiOpt 2018. Institute of Electrical and Electronics Engineers Inc., 16th International Symposium on Modeling and Optimization in Mobile, Ad Hoc, and Wireless Networks, WiOpt 2018, Shanghai, China, 5/7/18. https://doi.org/10.23919/WIOPT.2018.8362861
Farooq MJ, Zhu Q. Optimal dynamic contract for spectrum reservation in mission-critical UNB-IoT systems. In 2018 16th International Symposium on Modeling and Optimization in Mobile, Ad Hoc, and Wireless Networks, WiOpt 2018. Institute of Electrical and Electronics Engineers Inc. 2018 https://doi.org/10.23919/WIOPT.2018.8362861
Farooq, Muhammad Junaid ; Zhu, Quanyan. / Optimal dynamic contract for spectrum reservation in mission-critical UNB-IoT systems. 2018 16th International Symposium on Modeling and Optimization in Mobile, Ad Hoc, and Wireless Networks, WiOpt 2018. Institute of Electrical and Electronics Engineers Inc., 2018.
@inproceedings{52c66db712fd4db2b691462c2922efca,
title = "Optimal dynamic contract for spectrum reservation in mission-critical UNB-IoT systems",
abstract = "Spectrum reservation is emerging as one of the potential solutions to cater for the communication needs of massive number of wireless Internet of Things (IoT) devices with reliability constraints particularly in mission-critical scenarios. In most mission-critical systems, the true utility of a reservation may not be completely known ahead of time as the unforseen events might not be completely predictable. In this paper, we present a dynamic contract approach where an advance payment is made at the time of reservation based on partial information about spectrum reservation utility. Once the complete information is obtained, a rebate on the payment is made if the reservation is released. In this paper, we present a contract theoretic approach to design an incentivized mechanism that coerces the applications to reveal their true application type resulting in greater profitability of the IoT network operator. The operator offers a menu of contracts with advanced payments and rebate to the IoT applications without having knowledge about the types of applications. The decision of the applications in selecting a contract leads to a revelation of their true type to the operator which allows it to generate higher profits than a traditional spectrum auction mechanism. Under some assumptions on distribution of the utility of the applications, closed form solutions for the optimal dynamic spectrum reservation contract are provided and the sensitivity against system parameters is analyzed.",
keywords = "contract, information asymmetry, Internet of things, mission-critical, sequential screening, ultra narrow band",
author = "Farooq, {Muhammad Junaid} and Quanyan Zhu",
year = "2018",
month = "5",
day = "22",
doi = "10.23919/WIOPT.2018.8362861",
language = "English (US)",
booktitle = "2018 16th International Symposium on Modeling and Optimization in Mobile, Ad Hoc, and Wireless Networks, WiOpt 2018",
publisher = "Institute of Electrical and Electronics Engineers Inc.",

}

TY - GEN

T1 - Optimal dynamic contract for spectrum reservation in mission-critical UNB-IoT systems

AU - Farooq, Muhammad Junaid

AU - Zhu, Quanyan

PY - 2018/5/22

Y1 - 2018/5/22

N2 - Spectrum reservation is emerging as one of the potential solutions to cater for the communication needs of massive number of wireless Internet of Things (IoT) devices with reliability constraints particularly in mission-critical scenarios. In most mission-critical systems, the true utility of a reservation may not be completely known ahead of time as the unforseen events might not be completely predictable. In this paper, we present a dynamic contract approach where an advance payment is made at the time of reservation based on partial information about spectrum reservation utility. Once the complete information is obtained, a rebate on the payment is made if the reservation is released. In this paper, we present a contract theoretic approach to design an incentivized mechanism that coerces the applications to reveal their true application type resulting in greater profitability of the IoT network operator. The operator offers a menu of contracts with advanced payments and rebate to the IoT applications without having knowledge about the types of applications. The decision of the applications in selecting a contract leads to a revelation of their true type to the operator which allows it to generate higher profits than a traditional spectrum auction mechanism. Under some assumptions on distribution of the utility of the applications, closed form solutions for the optimal dynamic spectrum reservation contract are provided and the sensitivity against system parameters is analyzed.

AB - Spectrum reservation is emerging as one of the potential solutions to cater for the communication needs of massive number of wireless Internet of Things (IoT) devices with reliability constraints particularly in mission-critical scenarios. In most mission-critical systems, the true utility of a reservation may not be completely known ahead of time as the unforseen events might not be completely predictable. In this paper, we present a dynamic contract approach where an advance payment is made at the time of reservation based on partial information about spectrum reservation utility. Once the complete information is obtained, a rebate on the payment is made if the reservation is released. In this paper, we present a contract theoretic approach to design an incentivized mechanism that coerces the applications to reveal their true application type resulting in greater profitability of the IoT network operator. The operator offers a menu of contracts with advanced payments and rebate to the IoT applications without having knowledge about the types of applications. The decision of the applications in selecting a contract leads to a revelation of their true type to the operator which allows it to generate higher profits than a traditional spectrum auction mechanism. Under some assumptions on distribution of the utility of the applications, closed form solutions for the optimal dynamic spectrum reservation contract are provided and the sensitivity against system parameters is analyzed.

KW - contract

KW - information asymmetry

KW - Internet of things

KW - mission-critical

KW - sequential screening

KW - ultra narrow band

UR - http://www.scopus.com/inward/record.url?scp=85048350018&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=85048350018&partnerID=8YFLogxK

U2 - 10.23919/WIOPT.2018.8362861

DO - 10.23919/WIOPT.2018.8362861

M3 - Conference contribution

BT - 2018 16th International Symposium on Modeling and Optimization in Mobile, Ad Hoc, and Wireless Networks, WiOpt 2018

PB - Institute of Electrical and Electronics Engineers Inc.

ER -