  Cellular network performance can significantly benefit from direct
device-to-device (D2D) communication, but interference from cochannel D2D
communication limits the performance gain. In hybrid networks consisting of D2D
and cellular links, finding the optimal interference management is challenging.
In particular, we show that the problem of maximizing network throughput while
guaranteeing predefined service levels to cellular users is non- convex and
hence intractable. Instead, we adopt a distributed approach that is
computationally extremely efficient, and requires minimal coordination,
communication and cooperation among the nodes. The key algorithmic idea is a
signaling mechanism that can be seen as a fictional pricing mechanism, that the
base stations optimize and transmit to the D2D users, who then play a best
response (i.e., selfishly) to this signal. Numerical results show that our
algorithms converge quickly, have low overhead, and achieve a significant
throughput gain, while maintaining the quality of cellular links at a
predefined service level.
