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The authors adopt the second-price auction mechanisms to solve the channel allocation as well as the out-band sensing assignment problems in cognitive radio. They introduce a cheating-proof operating method by realizing the pricing scheme in a real time format. To adapt to the dynamic environment, they also study the optimization problem in terms of strategic budget setting, bidding slot duration setting and supplementary bidding rules. By incorporating additional bidding rules into the second-price auction algorithm, they achieve near-optimal system efficiency. Furthermore, they look into the problem of maximizing the auctioneer's revenue while still satisfying users' QoS requirements.
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