You get what you share: Incentives for a sharing economy

Conference Paper

In recent years, a range of online applications have facilitated resource sharing among users, resulting in a significant increase in resource utilization. In all such applications, sharing one's resources or skills with other agents increases social welfare. In general, each agent will look for other agents whose available resources complement hers, thereby forming natural sharing groups. In this paper, we study settings where a large population self-organizes into sharing groups. In many cases, centralized optimization approaches for creating an optimal partition of the user population are infeasible because either the central authority does not have the necessary information to compute an optimal partition, or it does not have the power to enforce a partition. Instead, the central authority puts in place an incentive structure in the form of a utility sharing method, before letting the participants form the sharing groups by themselves. We first analyze a simple equal-sharing method, which is the one most typically encountered in practice and show that it can lead to highly inefficient equilibria. We then propose a Shapley-sharing method and show that it significantly improves overall social welfare.

Duke Authors

Cited Authors

  • Gollapudi, S; Kollias, K; Panigrahi, D

Published Date

  • January 1, 2019

Published In

  • 33rd Aaai Conference on Artificial Intelligence, Aaai 2019, 31st Innovative Applications of Artificial Intelligence Conference, Iaai 2019 and the 9th Aaai Symposium on Educational Advances in Artificial Intelligence, Eaai 2019

Start / End Page

  • 2004 - 2011

International Standard Book Number 13 (ISBN-13)

  • 9781577358091

Citation Source

  • Scopus