Game theory in communication networks

Game theory has been used as a tool for modeling and studying interactions between cognitive radios envisioned to operate in future communications systems. Such terminals will have the capability to adapt to the context they operate in, through possibly power and rate control as well as channel selection. Software agents embedded in these terminals will potentially be selfish, meaning they will only try to maximize the throughput/connectivity of the terminal they function for, as opposed to maximizing the welfare of the system they operate in. Thus, the potential interactions among them can be modeled through non-cooperative games. The researchers in this field often strive to determine the stable operating points of systems composed of such selfish terminals, and try to come up with a minimum set of rules (etiquette) so as to make sure that the optimality loss compared to a cooperative – centrally controlled setting – is kept at a minimum.

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