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We consider a resource management problem in a multi-cell downlink OFDMAnetwork, whereby the goal is to find the optimal per base station resourceallocation and user-base station assignment. The users are assumed to bestrategic/selfish who have private information on downlink channel states andnoise levels. To induce truthfulness among the users as well as to enhance thespectrum efficiency, the resource management strategy needs to be bothincentive compatible and efficient. However, due to the mixed (discrete andcontinuous) nature of resource management in this context, the implementationof any incentive compatible mechanism that maximizes the system throughput isNP-hard. We consider the dominant strategy implementation of an approximatelyoptimal resource management scheme via a computationally tractable mechanism.The proposed mechanism is decentralized and dynamic. More importantly, itensures the truthfulness of the users and it implements a resource allocationsolution that yields at least 1/2 of the optimal throughput. Simulations areprovided to illustrate the effectiveness of the performance of the proposedmechanism.

Mechanism Design for Base Station Association and Resource Allocation in Downlink OFDMA Network