Two-Stage Dynamic Contract Design Under Asymmetric Information in Cooperative Communication

Cooperative communication is considered as a prospective technique to increase spectral efficiency. Because of the selfishness of relay nodes, it is necessary to offer relay nodes long-term incentives in the dynamic network. Two-stage dynamic contract with dynamic asymmetric information scenarios is studied in this paper. The type of each relay node is considered to be independent of the two stages with the same continuous probability distribution. By deriving the enough and essential conditions, a contract model is developed to identify the type of information on relay nodes. Moreover, to achieve the source’s maximum expected utility, this paper proposes an optimal sequential method to acquire the optimal relay-reward policy. Experimental results demonstrate that the system performance of cooperative communication is improved by the design of the optimal two-stage dynamic contract.