IDEAS home Printed from https://ideas.repec.org/a/spr/jcomop/v37y2019i2d10.1007_s10878-018-0315-5.html
   My bibliography  Save this article

Agent incentives of a proportional sharing mechanism in resource sharing

Author

Listed:
  • Zhou Chen

    (The Hong Kong University of Science and Technology)

  • Yukun Cheng

    (Suzhou University of Science and Technology)

  • Qi Qi

    (The Hong Kong University of Science and Technology)

  • Xiang Yan

    (Shanghai Jiao Tong University)

Abstract

In a resource sharing system, resources are shared among multiple interconnected peers. Peers act as both suppliers and customers of resources by making a certain amount of their resources directly available to other network participants. Their utilities are determined by the total of resources received from all neighbors. The allocation of the shared resources is determined by a preset mechanism that depends on the information submitted from the agents. The participating agents, however, may try to strategically manipulate its submitted information to improve its utility. In this paper, we consider a tit-for-tat popular proportional sharing mechanism and discuss the incentives an agent may lie, by a so-called vertex splitting strategy, for personal gains. We use the concept of incentive ratio to characterize the extent to which utilities can be increased. For the resource sharing system where the underlying network is a cycle, we prove that the incentive ratio is bounded by $$2\le \zeta \le 4$$ 2 ≤ ζ ≤ 4 . Furthermore, the incentive ratio on a cycle with even number of vertices is proved to be exactly 2.

Suggested Citation

  • Zhou Chen & Yukun Cheng & Qi Qi & Xiang Yan, 2019. "Agent incentives of a proportional sharing mechanism in resource sharing," Journal of Combinatorial Optimization, Springer, vol. 37(2), pages 639-667, February.
    • Handle: RePEc:spr:jcomop:v:37:y:2019:i:2:d:10.1007_s10878-018-0315-5
    DOI: 10.1007/s10878-018-0315-5
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10878-018-0315-5
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10878-018-0315-5?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Yokoo, Makoto & Sakurai, Yuko & Matsubara, Shigeo, 2004. "The effect of false-name bids in combinatorial auctions: new fraud in internet auctions," Games and Economic Behavior, Elsevier, vol. 46(1), pages 174-188, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wenjie Wang & Lei Xie, 2022. "Optimal pricing of crowdsourcing logistics services with social delivery capacity," Journal of Combinatorial Optimization, Springer, vol. 43(5), pages 1447-1469, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dirk Bergemann & Stephen Morris, 2012. "Robust Mechanism Design: An Introduction," World Scientific Book Chapters, in: Robust Mechanism Design The Role of Private Information and Higher Order Beliefs, chapter 1, pages 1-48, World Scientific Publishing Co. Pte. Ltd..
    2. Wang, Pengfei & Guan, Hongzhi & Liu, Peng, 2020. "Modeling and solving the optimal allocation-pricing of public parking resources problem in urban-scale network," Transportation Research Part B: Methodological, Elsevier, vol. 137(C), pages 74-98.
    3. S. M. Reza Dibaj & Ali Miri & SeyedAkbar Mostafavi, 2020. "A cloud dynamic online double auction mechanism (DODAM) for sustainable pricing," Telecommunication Systems: Modelling, Analysis, Design and Management, Springer, vol. 75(4), pages 461-480, December.
    4. Nick Arnosti & Marissa Beck & Paul Milgrom, 2016. "Adverse Selection and Auction Design for Internet Display Advertising," American Economic Review, American Economic Association, vol. 106(10), pages 2852-2866, October.
    5. Lamy, Laurent, 2009. "The Shill Bidding Effect versus the Linkage Principle," Journal of Economic Theory, Elsevier, vol. 144(1), pages 390-413, January.
    6. Yukun Cheng & Xiaotie Deng & Dominik Scheder, 2022. "Recent studies of agent incentives in internet resource allocation and pricing," Annals of Operations Research, Springer, vol. 314(1), pages 49-76, July.
    7. Guo, Mingyu & Conitzer, Vincent, 2009. "Worst-case optimal redistribution of VCG payments in multi-unit auctions," Games and Economic Behavior, Elsevier, vol. 67(1), pages 69-98, September.
    8. Dirk Bergemann & Stephen Morris, 2012. "Ex Post Implementation," World Scientific Book Chapters, in: Robust Mechanism Design The Role of Private Information and Higher Order Beliefs, chapter 3, pages 97-152, World Scientific Publishing Co. Pte. Ltd..
    9. Mustafa Afacan, 2014. "Fictitious students creation incentives in school choice problems," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 56(3), pages 493-514, August.
    10. Lorentziadis, Panos L., 2016. "Optimal bidding in auctions from a game theory perspective," European Journal of Operational Research, Elsevier, vol. 248(2), pages 347-371.
    11. Hultkrantz, Lars & Lunander, Anders, 2013. "Design of a Combinatorial Bidding Market for Green Corridor Freight," Working Papers 2013:6, Örebro University, School of Business.
    12. Laurent Lamy, 2007. "Contingent Auctions with Allocative Externalities: Vickrey vs. the Ausubel-Milgrom Proxy Auction," 2007 Meeting Papers 427, Society for Economic Dynamics.
    13. Paul Milgrom, 2006. "Package Auctions and Package Exchanges: the 2004 Fisher-Schultz Lecture," Levine's Bibliography 321307000000000131, UCLA Department of Economics.
    14. Lunander, Anders & Lundberg, Sofia, 2009. "Do Combinatorial Procurement Auctions Lower Cost? - An Empirical Analysis of Public Procurement of Multiple Contracts," Umeå Economic Studies 776, Umeå University, Department of Economics, revised 16 Sep 2009.
    15. Yotam Gafni & Moshe Tennenholtz, 2022. "Optimal Mechanism Design for Agents with DSL Strategies: The Case of Sybil Attacks in Combinatorial Auctions," Papers 2210.15181, arXiv.org, revised Jul 2023.
    16. Lawrence M. Ausubel & Paul Milgrom, 2004. "Ascending Proxy Auctions," Discussion Papers 03-035, Stanford Institute for Economic Policy Research.
    17. Laurent Lamy, 2007. "Contingent Auctions with Allocative Externalities : Vickrey Versus the Ausubel-Milgrom Proxy Auction," Working Papers 2007-26, Center for Research in Economics and Statistics.
    18. Federico Fioravanti & Massó Jordi, 2022. "False-name-proof and Strategy-proof Voting Rules under Separable Preferences," Working Papers 181, Red Nacional de Investigadores en Economía (RedNIE).
    19. Altuntaş, Açelya & Phan, William & Tamura, Yuki, 2023. "Some characterizations of Generalized Top Trading Cycles," Games and Economic Behavior, Elsevier, vol. 141(C), pages 156-181.
    20. Maria Ostrovnaya & Elena Podkolzina, 2013. "What impact does antitrust intervention have on competition? The case of public drug procurement in Russia," HSE Working papers WP BRP 32/EC/2013, National Research University Higher School of Economics.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:jcomop:v:37:y:2019:i:2:d:10.1007_s10878-018-0315-5. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.