To Preempt or Not: Tackling Bid and Time-Based Cheating in Online Spectrum Auctions
Online spectrum auctions offer ample flexibility for bidders to request and obtain spectrum on-the-fly. Such flexibility, however, opens up new vulnerabilities to bidder manipulation. Aside from rigging their bids, selfish bidders can falsely report their arrival time to game the system and obtain unfair advantage over others. Such time-based cheating is easy to perform yet produces severe damage to auction performance. The authors propose Topaz, a truthful online spectrum auction design that distributes spectrum efficiently while discouraging bidders from misreporting their bids or time report. Topaz makes three key contributions.