Conventional position estimation methods require the deployment of more fixed anchors in order to increase the accuracy in a crowded indoor environment, or they suffer from inaccuracies due to multipath fading. The present invention overcomes the problems associated with the prior arts by selecting one or more mobile nodes as virtual anchors when estimating the position of a target mobile node. This takes advantage of the fact that mobile nodes are closer to the target mobile node than the access points in most typical deployments, thus eliminating the need to deploy more access points or fixed anchors for the purpose of position determination. After obtaining an initial estimate of the position of the target mobile node, the target mobile node can serve as virtual anchors to estimate the positions of other mobile nodes, which can then be used to further refine the position estimate of the target mobile node.