In this thesis, we propose a generalized VCG auction mechanism for wireless network bandwidth allocation. In our bandwidth auction, we firstly utilize network coding in single-rate wireless networks. In this method, network coding is used to reduce the number of wireless transmissions and social surplus is maximized by deriving the optimization problem so as to efficiently allocate the bandwidth. Moreover, we secondly utilize the cooperative network coding in multi-rate wireless networks. In this method, cooperative network coding is used to enhance the network coding opportunities in multi-rate wireless environment and social surplus is maximized by deriving the optimization problem so as to efficiently allocate the bandwidth. We evaluate the performance of our proposed auctions with simulations. In numerical examples, we show the effectiveness of bandwidth allocation with auction mechanism, effectiveness of network coding for bandwidth auction in single-rate wireless networks, and effectiveness of cooperative network coding for bandwidth auction in multi-rate wireless networks.