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A distributed beamforming algorithm is proposed for the two-user Multiple-Input Single-Output (MISO) InterFerence Channel (IFC). The algorithm is iterative and uses as bargaining value the interference that each transmitter generates towards the receiver of the other user. It enables cooperation among the transmitters in order to increase both users' rates by lowering the overall interference. In every iteration, as long as both rates keep on increasing, the transmitters mutually decrease the generated interference. They choose their beamforming vectors distributively, solving the constrained optimization problem of maximizing the useful signal power for a given level of generated interference. The algorithm is equally applicable when the transmitters have either instantaneous or statistical Channel State Information (CSI).
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