Cooperation via contracts: stability and algorithms

  • Authors:
  • Bridge Q. Zhao;John C. S. Lui

  • Affiliations:
  • The Chinese University of Hong Kong;The Chinese University of Hong Kong

  • Venue:
  • INFOCOM'10 Proceedings of the 29th conference on Information communications
  • Year:
  • 2010

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Abstract

Embedding incentive mechanisms into network applications is becoming more important since they encourage nodes, either end hosts or routers, to cooperate so as to provide a high performance and scalable service. In this paper, we consider a new approach of using contracts to encourage and maintain cooperation. We formally define the notion of contract in a network setting and illustrate how contracts can be applied to P2P-VoD systems and ISP networks. We also formally show under what conditions a balanced and stable contract can be formaed so that all parties involved will have the incentive to honor the contract. We then propose both centralized and distributed algorithms to find and implement a stable and balanced contract with fairness and security properties. The algorithms can serve as a new genre of incentive mechanisms which are robust against collusion and Sybil attacks.