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This paper studies a joint optimization problem of sub‐carrier assignment and power allocation in orthogonal frequency division multiple access (OFDMA) wireless networks. A major challenge in solving the optimization problem is non‐convexity caused by the combinatorial nature of sub‐carrier assignment problem and/or non‐convex objective functions. To address the combinatorial complexity, we formulate the resource allocation problem as an optimization problem with continuous variables. We propose a novel approach based on a penalty function method and an interior point method (PM/IPM) to solve the problem. In specific, using a two‐step implementation, the penalty method is applied first to convert the non‐convex feasible region to a convex one. Then, the interior point method is deployed to solve the problem which is non‐convex only in the objective function. To evaluate the performance of PM/IPM …