A multi-unit profit competitive mechanism for cellular traffic offloading

Abstract

Cellular traffic offloading is nowadays an important problem in mobile networking. We model it as a procurement problem where each agent sells multi-units of a homogeneous item with privately known capacity and unit cost, and the auctioneer's demand valuation function is symmetric submodular. Based on the framework of random sampling and profit extraction, we aim to design a prior-free mechanism which guarantees a profit competitive to the omniscient single-price auction. However, the symmetric submodular demand valuation function and 2-parameter setting present new challenges. By adopting the highest feasible clear price, we successfully design a truthful profit extractor, and then we propose a mechanism which is proved to be truthful, individually rational and constant-factor competitive in a fixed market.