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Market-driven spectrum auctions offer an efficient way to improve spectrum utilization by transferring unused or under-used spectrum from its primary license holder to spectrum-deficient secondary users. Such a spectrum market exhibits strong locality in two aspects: that spectrum is a local resource and can only be traded to users within the license area, and that holders can partition the entire license areas and sell any pieces in the market. The authors design a spectrum double auction that incorporates such locality in spectrum markets, while keeping the auction economically robust and computationally efficient. Their designs are tailored to cases with and without the knowledge of bid distributions.
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