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Market based spectrum trading has been extensively studied to realize efficient spectrum utilization in Cognitive Radio Networks (CRNs). In this paper, the authors utilize the concept of insurance in spectrum trading so as to improve spectrum efficiency in CRNs. They show that by additionally purchasing a specifically designed insurance contract from a PU, an SU can improve its utility since it will be insured against the potential accident, i.e., transmission failure incurred by excessively low SINR. Therefore insurance provides SUs more incentive to purchase PUs' channels and spectrum utilization in CRNs can be improved.
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