Dynamic Spectrum Auction

Static spectrum auction, when applied to dynamic spectrum allocation, will cause potential utility loss. For example, in Fig. 4.1, suppose that buyer A arrives at the first time stage, requesting for 3 time slots, and his true valuation is 1 per time slot. Later at the second time stage, buyer B and buyer C arrive, each requesting for 2 time slots, and their true valuations are both 1 per time slots. If the auctioneer allocates the spectrum to buyer A at the first time stage, buyer A gets utility of 3. However, if the auctioneer rejects buyer A in the first time stage and allocates the spectrum to buyer B and C simultaneously at the second time stage, they get a total utility of 4. Although the spectrum is idle in the first time stage, overall, the spectrum utilization of the second option is higher.