DeepAI
Log In Sign Up

Approximately Socially-Optimal Decentralized Coalition Formation

09/18/2020
by   Sid Chi-Kin Chau, et al.
0

Coalition formation is a central part of social interactions. In the emerging era of social peer-to-peer interactions (e.g., sharing economy), coalition formation will be often carried out in a decentralized manner, based on participants' individual preferences. A likely outcome will be a stable coalition structure, where no group of participants could cooperatively opt out to form another coalition that induces higher preferences to all its members. Remarkably, there exists a number of fair cost-sharing mechanisms (e.g., equal-split, proportional-split, egalitarian and Nash bargaining solutions of bargaining games) that model practical cost-sharing applications with desirable properties of stable coalition structure, such as its existence and a small strong price-of-anarchy (SPoA) for approximating the social optimum. In this paper, we close several gaps on the results of decentralized coalition formation: (1) We establish a logarithmic lower bound on SPoA, and hence, show several previously known fair cost-sharing mechanisms are the best practical mechanisms with minimal SPoA. (2) We improve the SPoA of egalitarian and Nash bargaining cost-sharing mechanisms to match the lower bound. (3) We derive the SPoA of a mix of different cost-sharing mechanisms. (4) We present a decentralized algorithm to form a stable coalition structure. (5) Finally, we apply our results to a novel application of peer-to-peer energy sharing that allows households to jointly utilize mutual energy resources. We present an empirical study of decentralized coalition formation in a real-world P2P energy sharing project.

READ FULL TEXT

page 1

page 8

07/16/2020

Decentralized Ride-Sharing and Vehicle-Pooling Based on Fair Cost-Sharing Mechanisms

Ride-sharing or vehicle-pooling allows commuters to team up spontaneousl...
07/25/2022

Peer-to-Peer Sharing of Energy Storage Systems under Net Metering and Time-of-Use Pricing

Sharing economy has become a socio-economic trend in transportation and ...
12/24/2019

A Coalition Formation Game Framework for Peer-to-Peer Energy Trading

This paper studies social cooperation backed peer-to-peer energy trading...
07/16/2020

Fair Ride Allocation on a Line

With the advent of the ride-sharing platform, the carpooling has become ...
06/14/2019

What is Stablecoin?: A Survey on Price Stabilization Mechanisms for Decentralized Payment Systems

Since the first theoretical concept of blockchains was proposed, over 10...
05/06/2021

How to split the costs among travellers sharing a ride? Aligning system's optimum with users' equilibrium

How to form groups in a mobility system that offers shared rides, and ho...
07/19/2021

Data Sharing Markets

With the growing use of distributed machine learning techniques, there i...