Abstract: A system model consisting of macro and micro base stations (BS) is introduced to solve the problem of power allocation in heterogeneous dense network. In this hierarchical framework, the problem of power allocation is modeled as a stackelberg game. Based on this model, a two-stage pricing algorithm is proposed to allocate power resource to each BS. In this algorithm, a power price is allocated to each micro-BS by macro-BS and all micro-BSs are calculating respective optimal transmit power based on this price to maximize individual utility. Then a grid-based scenario is introduced to verify the proposed theory. Theoretical analysis and simulation results both validate that the proposed scheme makes performance improvement on spectral and power efficiency. Most importantly, the computaitonal complexity of the proposed scheme is greatly improved, especially in dense deployment.

Key words: power allocation, stackelberg game, power pricing, dense deployment, distributed, heterogeneous