Abstract. In this paper, a radio resource sharing scheme for wireless cellular network is investigated to achieve efficiency and fairness among base stations. We propose a credit-token based spectrum sharing algorithm. Game theory is utilized to formulate and analyze the proposed spectrum sharing algorithm. We first discuss the simplest two-base-station game through a graphical method to gain insights for the solution. Afterwards, the Nash Equilibrium of the n-base-station game is derived and the spectrum allocation at the Nash equilibrium is shown to be unique. Several desirable properties, including allocative efficiency, Pareto optimality, weighted max-min fairness, and weighted proportional fairness, are proved to be attained at the Nash equilibrium. Furthermore, we design a strategy-proof spectrum allocation mechanism based on the proposed spectrum sharing algorithm so that truthful declarations of spectrum demands maximize the performance in each cell.