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Learning End-User Behavior for Optimized Bidding and User/Network Association

We study the impact of end-user behavior on service provider (SP) bidding and user/network association in a HetNet with multiple SPs while considering the uncertainty in the service guarantees offered by the SPs. Using Prospect Theory (PT) to model end-user decision making that deviates from expected utility theory (EUT), we formulate user association with SPs as a multiple leader Stackelberg game where each SP offers a bid to each user that includes a data rate with a certain probabilistic service guarantee and at a given price, while the user chooses the best offer among multiple such bids. We show that when users underweight the advertised service guarantees of the SPs (a behavior observed under uncertainty), the rejection rate of the bids increases dramatically which in turn decreases the SPs utilities and service rates. To overcome this, we design a two-stage learning-based optimized bidding framework for SPs. In the first stage, we use a support vector machine (SVM) learning algorithm to predict users’ binary decisions (accept/reject bids), and then in the second stage we use a dynamic programming based optimized bidding (DPOB) algorithm to efficiently arrive at the optimal SP bids. Simulation results and computational complexity analysis validate the efficiency of the bidding framework.