Pricing and Power allocation in Femtocells using Stackelberg Game Theory

We consider a system with multiple Femtocells operating in a Macrocell. The transmissions in one Femtocell interfere with its neighboring Femtocells as well as with the Macrocell Base Station. We model Femtocells as selfish nodes and the Macrocell Base Station protects itself by pricing subchannels for each usage. We use Stackelberg game model to study this scenario and obtain equilibrium policies that satisfy certain quality of service.