English

Large Language Models as Bidding Agents in Repeated HetNet Auction

Networking and Internet Architecture 2026-03-06 v1 Artificial Intelligence Computer Science and Game Theory

Abstract

This paper investigates the integration of large language models (LLMs) as reasoning agents in repeated spectrum auctions within heterogeneous networks (HetNets). While auction-based mechanisms have been widely employed for efficient resource allocation, most prior works assume one-shot auctions, static bidder behavior, and idealized conditions. In contrast to traditional formulations where base station (BS) association and power allocation are centrally optimized, we propose a distributed auction-based framework in which each BS independently conducts its own multi-channel auction, and user equipments (UEs) strategically decide both their association and bid values. Within this setting, UEs operate under budget constraints and repeated interactions, transforming resource allocation into a long-term economic decision rather than a one-shot optimization problem. The proposed framework enables the evaluation of diverse bidding behaviors -from classical myopic and greedy policies to LLM-based agents capable of reasoning over historical outcomes, anticipating competition, and adapting their bidding strategy across episodes. Simulation results reveal that the LLM-empowered UE consistently achieves higher channel access frequency and improved budget efficiency compared to benchmarks. These findings highlight the potential of reasoning-enabled agents in future decentralized wireless networks markets and pave the way for lightweight, edge-deployable LLMs to support intelligent resource allocation in next-generation HetNets.

Keywords

Cite

@article{arxiv.2603.04455,
  title  = {Large Language Models as Bidding Agents in Repeated HetNet Auction},
  author = {Ismail Lotfi and Ali Ghrayeb and Samson Lasaulce and Merouane Debbah},
  journal= {arXiv preprint arXiv:2603.04455},
  year   = {2026}
}

Comments

Accepted at WCNC 2026. Code available here: https://github.com/ismail0T/Strategic_Bidding_HetNet

R2 v1 2026-07-01T11:03:44.207Z