  Capacity improvement from transmitter and receiver cooperation is
investigated in a two-transmitter, two-receiver network with phase fading and
full channel state information available at all terminals. The transmitters
cooperate by first exchanging messages over an orthogonal transmitter
cooperation channel, then encoding jointly with dirty paper coding. The
receivers cooperate by using Wyner-Ziv compress-and-forward over an analogous
orthogonal receiver cooperation channel. To account for the cost of
cooperation, the allocation of network power and bandwidth among the data and
cooperation channels is studied. It is shown that transmitter cooperation
outperforms receiver cooperation and improves capacity over non-cooperative
transmission under most operating conditions when the cooperation channel is
strong. However, a weak cooperation channel limits the transmitter cooperation
rate; in this case receiver cooperation is more advantageous.
Transmitter-and-receiver cooperation offers sizable additional capacity gain
over transmitter-only cooperation at low SNR, whereas at high SNR transmitter
cooperation alone captures most of the cooperative capacity improvement.
