P. Economic incentive patterns and their application to ad hoc networks.pdfVIP

Economic Incentive Patterns and their Application to Ad Hoc Networks Ralf Anders, Philipp Obreiter ralfanders@gmx.de, obreiter@ipd.uni-karlsruhe.de November 10, 2003 Technical Report Nr. 2003-17 University of Karlsruhe Faculty of Informatics Institute for Program Structures and Data Organization D-76128 Karlsruhe, Germany Abstract While research about cooperation incentives for mobile ad hoc networks (MANETs) is done only for a relative short period, there exists tremendous knowledge in the economic and social areas. Based on a new categorization of incentive patterns, we examine the relevant properties of each pattern and demonstrate their respective design alternatives and occurring challenges for the application to ad hoc networks. With a focus on trade based patterns, we found that negotiation about actions proves to be very complex or inefficient in MANETs. Another approach, the introduction of an artificial currency, also implies several problems like how to equip the entities with means of payment and how to secure liquidity. As a novelty, we introduce a new kind of incentive pattern following the concept of company shares. It suits well for MANETs because it can be shown that through the creation of individual currencies the above mentioned problems disappear. Contents 1 Introduction 1 2 General Considerations 1 2.1 Aspects for Economic Incentives 1 2.2 Aspects for the Application to Ad hoc Networks 2 3 Trust Based Incentive Patterns 2 3.1 Collective Pattern 2 3.2 Community Pattern 3 4 Trade Based Incentive Patterns 3 4.3 Barter Trade Pattern 3 4.4 Bearer Bills/Notes