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This paper introduces a novel concept from coalitional game theory which allows the dynamic formation of coalitions among wireless nodes. A simple and distributed merge and split algorithm for coalition formation is constructed. This algorithm is applied to study the gains resulting from the cooperation among single antenna transmitters for virtual MIMO formation. The aim is to find an ultimate transmitters coalition structure that allows cooperating users to maximize their utilities while accounting for the cost of coalition formation. Through this novel game theoretical framework, the wireless network transmitters are able to self-organize and form a structured network composed of disjoint stable coalitions. Simulation results show that the proposed algorithm can improve the average individual user utility by 26.4% as well as cope with the mobility of the distributed users.

A Distributed Merge and Split Algorithm for Fair Cooperation in Wireless Networks