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Market mechanisms have been exploited as important means for spectrum acquisition and access in cognitive radio networks. In this paper, the authors propose a two-tier market for decentralized dynamic spectrum access. In the proposed Tier-1 market, spectrum is traded from a Primary User (PU) to Secondary Users (SUs) in a relatively large time scale to reduce signaling overhead. Then driven by dynamic traffic demands, SUs set up the Tier-2 market to redistribute channels among themselves in a small time scale. More specifically, they use Nash bargain game to model the spectrum acquisition of SUs in the Tier-1 market and derive the equilibrium prices.
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