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Device-to-device (D2D) communication technology is a promising add-on component for future wireless networks to provide local area services with increased spectrum efficiency and improved user experience. Three modes (i.e., cellular mode, reuse mode, and dedicated mode) can be used for D2D communication. A potential D2D user equipment (UE) can select a communication mode and dynamically adapt the mode selection according to the performance and the cost. This is referred to as the user-controlled mode selection problem. Also, a base station (BS) needs to reserve a spectrum band for the dedicated mode of operation, which we refer to as spectrum partitioning. The optimal spectrum partitioning needs to consider the utility of the BS that depends on the distribution of the users' mode selection, which, in turn, is governed by the spectrum partitioning. To jointly address the problems of spectrum …