Game Theoretic Spectrum Allocation in Femtocell Networks for Smart Electric Distribution Grids

Ever growing penetration of the behind-the-meter technologies is changing the electricity consumption profiles of end-users. Intelligent coordination of these emerging technologies through a robust communication infrastructure enables their seamless integration with electric utilities’ operation. In this context, an efficient and reliable communication infrastructure plays a pivotal role in enabling optimal integration of emerging resources. In this paper, we propose a game-theory based method to enhance efficiency of the underlying communication network. Specifically, we focus on Femtocell communication technology which is one the promising options for improving poor indoor communication coverage. The major drawback for using femtocell communication technology is cross-layer interference of femto users (FUs) and macro users (MUs) which adversely impact network performance. In this paper, we propose a novel approach for sharing spectrum in a cognitive radio system with FUs and MUs as primary and secondary users, respectively. The underlying problem is formulated as Stackelberg game that is joined with a convex optimization problem. In this study, MUs and FUs are assumed to be selfish, rational and motivated to achieve maximum utility function, while MUs are competing to obtain maximum bandwidth. Finally, we present a closed form solution for the proposed approach which obtains a unique Nash Equilibrium and prioritizes the access of MUs to femto-base stations. Simulation results provide proof of concept and verify the effectiveness of our mathematical modeling.