1. finance
2. personal finance
3. lending
4. credit cards

Dynamic Algorithms for Cooperation in
User-provided Network Services
Leonidas Georgiadis∗ , George Iosifidis† , Leandros Tassiulas†
∗
Dept. of Electrical and Computer Engineering, Aristotle University of Thessaloniki, and CERTH, Greece
†
Dept. of Electrical and Computer Engineering, University of Thessaly, and CERTH, Greece
Abstract—The ever increasing demand for Internet access, and
the proliferation of advanced user-owned network equipment
have given rise to collaborative schemes, where users satisfy each
other’s communication needs whenever they have spare network
resources. In this paper, we consider such an autonomous
model where users have random resource availability and decide
independently how to serve each other. For this dynamic setting,
we find that a myopic proportional allocation strategy, applied
by each node in an asynchronous fashion based only on local
information, converges to a stable equilibrium point. Moreover,
we show through numerical examples, that the equilibrium
exhibits a rich structure and coincides with the lexicographically
maximum allocation of the users’ resources. Accordingly, we
consider a more sophisticated model where each user can pay
for the services she receives, with service credits. This enhances
the cooperation beyond those users that can directly exchange
resources. For this setting, we propose a backpressure-inspired
heuristic algorithm for implementing a lightweight, decentralized
service exchange scheme, based on the credit backlogs, that
balances as much as possible the service allocation across the
different users.
I. I NTRODUCTION
Motivation. Today we are witnessing an increasing interest
for cooperative networking services which extend the wellestablished peer-to-peer (P2P) file sharing concept [1], [2].
Some examples are the Wi-Fi sharing networks [4], [3], and
the commercial [6], or community [7] mesh networks for
residential users, as shown in Fig. 1. These models rely on
collaborative consumption of underutilized or idle resources,
such as the Internet access. Besides, similar schemes have
been proposed for energy sharing over smart grid [8], and for
a variety of other networked markets [9], [10], where users
exchange directly, i.e., without intermediaries, resources such
as residential space and cars.
In this type of service exchange models (bartering), each
user is both a service consumer and a service provider.
The main idea is that users can exploit the diversity of
their resource availability and needs, and increase through
collaboration their long - term benefits. Clearly, a prerequisite
for the success of these models is to ensure that users will
share their resources in a fair fashion, and hence will agree to
cooperate. Ideally, from a system design point of view, each
user should receive resources (or, service) commensurate to
her contribution towards the other users. When this is not
possible, e.g., due to asymmetries in resource availability, we
would prefer to have a fair outcome that balances the resource
exchanges as much as possible.
Fig. 1. Instances of Service Exchange in Networks: left: a wireless
mesh network of mobile devices that share their Internet connections,
e.g., as in Open Garden [5]. Right: an example of a mesh network
among residential users, as proposed by Telefonica/BeWifi [6], for
sharing their Internet broadband connections.
Nevertheless, designing and implementing such fair policies
for these collaborative networks has unique challenges. In
particular:
• Graph-constrained Decisions. The service exchange
among the users is constrained by an underlying graph
that prescribes, for each node (representing a user), the
subset of the nodes she can serve and receive services
from. Such constraints arise due to users’ preferences, the
different patterns of resource availability and needs, etc.
For example in a collaborative mesh network the users
should be in range with each other.
• Decentralized Decisions. Such service exchange decisions are not centrally designed; instead they are devised
independently by each user, based on the strategy she
has adopted, aiming to maximize the total service she
receives in exchange.
• Asynchronous Decisions. The service exchange decisions
are not synchronous. They are determined independently
and asynchronously by each user whenever she has idle
network resources.
• Myopic Decisions. Even worse, in most cases, each user
is not aware of the resource availability of other users in
the past or in the future, nor she is aware of their previous
or current service allocation decisions (towards the other
nodes). Therefore, the service exchange decisions are
myopic, based only on local and currently available
information.
In this totally dynamic and fully decentralized setting, the
following question arises: which is a fair long-term allocation
for this graph-constrained dynamic service exchange model,
and how can it be achieved in a decentralized and asynchronous fashion by the users?
Methodology and Contributions. We study this question
using a general model that abstracts all the above cooperative
networking scenarios. The users interact exchanging their idle
resources, with the objective to maximize the total amount
of resource (or, equivalently, service) each one will receive
from the others. In particular, random service opportunities
are created by each user (hereafter called also "tokens"),
possibly with different rate, and each user has unsaturated
demand for receiving service from the other users. Nodes
can exchange resources only with their neighbors, where
neighborhood relationships are bidirectional and specified by
some undirected connected graph. Each token can be assigned
to only one user who is represented by a node in the graph.
For example, a mobile device currently not using its cellular
connection, can decide to serve a nearby user for a certain time
period. To simplify the analysis, we assume that the tokens
have the same value, e.g., they represent equal servicing time1 .
The interactions of the users give rise to a dynamic service
exchange economy where each user decides how to allocate
her tokens as they are generated. The operation of this market
can be characterized by the token exchange ratios for each
pair of neighbors. These ratios admit a natural interpretation
as the "prices" at which these exchanges are realized [1],
[2]. The token allocation decision of each user is devised
based on a proportional best response strategy. Namely, each
user assigns her tokens to her neighbor that offers the lowest
price, i.e., reciprocates with the largest number of tokens for
each token she receives. Each user does not know the token
generation rates of other nodes, nor their previous or current
token allocation policy.
We show numerically that such myopic token allocation decisions lead to an exchange equilibrium. The latter is defined as
the asymptotic point where each user has equal average token
exchange ratios for all her neighbors that she collaborates with.
Therefore, each node is characterized by a single price. This
equilibrium exhibits a very rich and interesting structure. For
example, the nodes are partitioned in sets such that all nodes
in each different set have equal prices. If there is just one
such set, then the value of the price is equal to one, i.e., each
node receives service equal to her contribution. When there
are multiple sets, there is service exchange only among the
set of the most expensive nodes with the set of the cheapest
nodes, the set of the second most expensive nodes with the
set of the second cheapest nodes, and so on. There are also
some topological properties. For example, the nodes with the
cheapest prices are not connected with each other, and have
connections only with the most expensive nodes.
We explain through representative examples, that this equilibrium coincides with the lexicographically maximum (lexoptimal) token exchange solution. In other words, the resulting
1 This assumption can be easily relaxed, since we do allow the nodes to
have different token generation rates.
price vector has the desirable max-min fairness properties
and it is Pareto optimal, [11], [12]. This surprising result
reveals that centrally designed fair policies, which have been
extensively used for resource allocation and load balancing
in communication networks [13], can be achieved in these
decentralized, dynamic service exchange models, where users
compete and apply this naive best response asynchronous
policy.
Accordingly, we study how these systems can be enhanced
by a credit exchange scheme that addresses the problem of
double coincidence of needs and wants, and facilitates the
users’ interactions. In particular, we assume that each user
is initially endowed with a certain amount of credit, which
she can exchange for the services she receives. Each user
creates a different type of credit, that has different value to
the community based on the service token generation rate
of the user. For this credit-based service exchange market
we propose a backpressure-inspired [19] heuristic algorithm
where users serve those having the largest credit backlogs
(queues). The advantage of this scheme, compared to typical
pricing schemes, is that it is totally decentralized, and requires
minimum accounting (for maintaining the credit queues), and
information exchange only among neighboring nodes.
We show numerically that this mechanism often allows each
node to receive on average as many tokens as it allocates to her
neighbors. For certain scenarios, when the underlying connecting graph is not symmetric (we assume a directed graph) this
credit-based algorithm may yield highly unbalanced service
allocation outcomes. To address this issue, we propose a credit
control mechanism that imposes an upper bound parameter on
the amount of credit each user can issue. The credit of each
user is consumed as she creates more service tokens. Hence,
the nodes with the lowest service rate eventually stop creating
credit. In a way, this control parameter determines the balance
between the efficiency of the market, when all users offer as
many tokens as they generate, and the fairness, where users
consume tokens in proportion to those they offer to others.
The rest of this paper is organized as follows. Section
II provides the model details and proposes a myopic token
allocation policy that leads to the max-min fair solution. In
Section III we introduce the respective credit-based service
exchange model, and the respective heuristic algorithms. We
study numerically the convergence and the fairness properties
of the myopic allocation policy and the backpressure-inspired
algorithm in Section IV. Finally, in Section V we discuss
related works, and conclude in Section VI.
II. M ODEL AND A LGORITHMS : T HE C ASE OF BARTERING
A. Model
We consider a service exchange market that is modeled as
an undirected connected graph G = (N , E) with node and
edge set N and E, respectively. Let Ni = {j : (i, j) ∈ E} be
the set of neighbors of node i ∈ N . The market operation is
continuous in the time domain. Every node i creates service
tokens according to a Poisson process with rate λi > 0. Each
token, upon creation, is allocated to one of her neighbors. Let
dij (ti ) = {1, 0} denote the decision of node i to allocate or
not, respectively, the token created in time instance ti , to her
neighbor j ∈ Ni . Also, we denote with Dij (t) ∈ Z + the
number of tokens that node i has allocated to node j ∈ Ni
until time t.
Every token is always allocated to one node, i.e., the
users do not reserve tokens, and the tokens are not splittable.
Therefore, it holds
X
dij (ti ) = 1, ∀ i ∈ N , ∀ ti .
(1)
Algorithm 1: Asynchronous Best Response Strategy
1
2
3
4
5
6
7
j∈Ni
We assume that the allocation decision is realized instantly.
Hence, in each time instance ti , ∀ i ∈ N , only one token is
created in the network (that by node i)2 . Finally, we denote
with Ri (t) and Di (t) the total service tokens that node i ∈ N
has received and allocated respectively, until time t:
X
X
Dij (t) .
(2)
Dji (t), Di (t) =
Ri (t) =
j∈Ni
j∈Ni
A meaningful metric for characterizing the performance of
each node participating in this service, is the ratio ρij (t) =
Dji (t)/Dij (t) for each one of her neighbors j ∈ Ni . This
ratio admits a natural interpretation as the token exchange
price among nodes (i, j) ∈ E. To see this, note that ρij (t)
corresponds to the number of service tokens node i has
received from node j, for each token that i has offered to j
until time t. Moreover, we define the price per node i ∈ N as
ρi (t) = Ri (t)/Di (t), and the vector ρ(t) = ρi (t) : i ∈ N .
Fair Policy. We are interested in the long-term, asymptotic
behavior of the market. That is, we study the average rate of
tokens exchanged among each pair of nodes (i, j) ∈ E:
lim
t→∞
Dji (t)/t
= lim ρij (t) = ρ¯ij ,
Dij (t)/t t→∞
(3)
and the average rate of total exchanged tokens:
lim ρi (t) = ρ¯i , ∀ i ∈ N .
t→∞
(4)
Notice that we denote all the limiting versions of the variables
with the respective overline symbols. Based on the token allocation policy that each node employs, there are many possible
price solutions ρ¯ij , (i, j) ∈ E. We denote the respective set of
all these feasible solutions as P.
The first question that arises for this dynamic service
exchange model, is what is a fair long-term allocation of the
service tokens. In other words, if there was a central network
entity, e.g., a controller, how would allocate the generated
tokens? Clearly, the most straightforward criterion is to allocate to every node i ∈ N tokens equal to her contribution,
¯i = D
¯ i . However, due to the graph that constraints
i.e., R
resource exchanges, and the different token generation rates
of the nodes, such policies will not be, in general, realizable.
In these cases, the controller would prefer to ensure the most
balanced token exchange allocation.
2 In other words, we assume that the generation processes are independent
across nodes.
8
t ← ti % Event-driven algorithm.
j ∗ = 0; %
maxprice = LB; % Set a very low value.
%Find the highest-price neighbor.
for j = 1 : Ni do
if Dji (t)/Dij (t) > maxprice then
j ∗ = j;
maxprice = Dji (t)/Dij (t);
end
end
dij ∗ (t) = 1; Dij ∗ (t) = Dij ∗ (t) + 1;
A suitable method to achieve this goal is to employ the lexicographically maximum (or, “lex-optimal”) criterion, which
has been extensively used for max-min fair resource allocation,
and load balancing in communication networks [13], [11],
[12], [14]. This multi-objective optimization method increases
first as much as possible the allocated tokens to the node with
the cheapest price, i.e., the one having received the smaller
number of tokens compared to her contribution. Next, if there
are many choices, it attempts to increase the tokens allocated
to the node with the second cheapest price, and so on.
More formally, for the problem under consideration, we
are interesting in finding the lex-optimal (or, max-min) price
vector ρ¯ ∗ , i.e.,
¯ ∀ ρ¯ ∈ P,
ρ¯ ∗ ρ,
(5)
∗
where
denotes the lexicographic ordering: if φ ρ¯ and
φ ρ¯ are the respective vectors created by sorting the components of ρ¯ ∗ and ρ¯ in non-decreasing order, then the first
¯ is positive
non-zero component of the vector φ(ρ¯ ∗ ) − φ(ρ)
[13], [11]. It is easy to see that the set of feasible prices P is
compact and convex. Hence, as is shown in [12], there is a
unique lex-optimal ρ¯ ∗ ∈ P.
In the sequel, we study whether and how the users participating in this market can achieve this lex-optimal solution
based solely on myopic strategies, i.e., without having global
information for the market, nor being assisted by a central
controller or a market clearing house.
B. Dynamic Exchange Policy
In the absence of a network controller, each user will try to
allocate every service token that she creates to her neighbors
from which she anticipates to receive more service in the
future. Therefore, a rational node i who creates a token in
time instance ti , will allocate it to node j ∈ Ni for which the
current price ρij (ti ) = Dji (ti )/Dij (ti ) is the largest among
all her neighbors k ∈ Ni . From a different perspective, we can
interpret this strategy as each node i "selling" her token to her
neighbor offering the highest token exchange price. This is a
basic rationality condition for such competitive markets [1],
[10], [15].
The machinery of this decision making is presented in
Algorithm 1, which is executed continuously, upon the creation
of a service token at any node. To avoid deadlocks, we assume
that each pair of neighbors has exchanged initially at least
one token. The steady state of the market is represented by an
exchange equilibrium [15]. At that point, the average token
exchange prices are expected to satisfy certain conditions
according to the following definition:
Definition 1. Exchange Equilibrium. A price vector ρ¯ is an
equilibrium, if and only if for every node i ∈ N it holds (i)
¯ ji = ρ¯i D
¯ ij for all j ∈ Ni , and (ii) if D
¯ ji > 0 for some
D
j ∈ Ni , then ρ¯j = mink∈Ni ρ¯k .
The question that arises is if this uncoordinated myopic
behavior of nodes can lead to the competitive equilibrium,
and whether the latter is related to the lex-optimal point.
Interestingly, we show in the numerical results section, that
the answer to both of these questions is affirmative.
However, it is clear that this kind of bartering systems, i.e.,
without any kind of money or credit systems, are constrained
by the problem of double coincidence of needs and wants.
To understand this, consider a simple network with four
nodes (1 → 2 → 3 → 4 → 1), where no node can
reciprocate exchanging directly tokens with her neighbors. In
such cases, a pure bartering service exchange scheme as the
one described herein, is not effective. In the next section,
we address this issue by proposing a credit-based service
exchange scheme which however, unlike this kind of similar
systems, is totally decentralized and does not require a clearing
house for determining the prices for the tokens of the different
users.
III. M ODEL AND A LGORITHMS : T HE C ASE OF C REDIT
In this section, we extend the service exchange model by
introducing a credit system. Namely, each user is endowed
with a certain amount of credit that can trade for receiving
services. This method allows users to cooperate even if they
cannot directly exchange services. The latter case arises often
especially when the graph that connects the nodes is directed,
and/or the resource availability of the nodes is asymmetric.
A. Model
Eq. (6) implies that every user does not have a backlog or
budget of her own credit, as she can issue as much credit
as she wants. This assumption may result in highly unfair
token allocations for certain network graphs, and we relax
it in the sequel. Each user i can serve only her neighbors
Ni . We denote the slots that user i has relayed user j, until
slot t, with Dij (t) ∈ Z + , and construct the servicing matrix
D(t) = (Dij (t) : (i, j) ∈ E).
We assume that each user i ∈ N creates a service opportunity (or, token) in each slot t, with probability
Ti
p i = PN
j=1
Tj
.
We assume that the slot duration is small enough such that in
each slot only one node creates a service opportunity, similarly
to Section II. Upon creation, user i decides to whom among
her neighbors she will allocate it. Unlike the previous model,
where decisions where taken based on the history of service
exchanges among i and all her neighbors, now the allocation
is based on the available credit each user has.
We follow the rationale of backpressure-like queueing control algorithms [19] to determine how a user will allocate her
service tokens. The underlying idea is that the users having
accumulated large credit (long credit queues) by serving
other users, should be prioritized when they ask for service.
Therefore, in a way, the credit of each user is supported by her
service provision capability. This queue-based control allows
the inclusion of this credit system without however requiring
any kind of centralized infrastructure for accounting, or a
clearing house for price determination.
B. Credit-based Servicing Algorithm
The machinery of this credit-based service exchange is as
follows. Whenever a user i ∈ N creates a service token, she
calculates all the differences in accumulated coupons (coupon
backlogs) that she possesses compared to her neighbors.
Namely, for each one of her neighbors j ∈ Ni , and for every
type of credit (each type corresponds to one node), node i
calculates the quantity
Yijm (t) = Xjm (t) − Xim (t), ∀ j ∈ Ni , m ∈ N ,
We consider again the set N of the N = |N | users who
are embedded in the graph Gc = (N , Ec ). Notice that in this
case, the graph is directed and hence it has a different set
of edges (than previously), denoted Ec . Also, we consider that
the market operation is time slotted. Without loss of generality,
we study the market for a time period of t = 1, 2, . . . , Tmax
slots, that is long enough so as to characterize its asymptotic
performance. Each user i ∈ N can serve her outgoing
neighbors for Ti < Tmax slots. This represents the serving
capacity of the user. Each user i has Xij (t) credit tokens of
every other user j ∈ N , i 6= j, in slot t. By definition it is
Xii (t) = 0, ∀ t, ∀ i ∈ N ,
(6)
Xij (0) = 0, ∀ j ∈ N .
(7)
and
(8)
(9)
where j is the outgoing neighbor of i, Xjm (t) is the amount
of credit of type m (i.e., issued by user m) that user j has at
her disposal in slot t, and Xim (t) the respective quantity for
user i.
After calculating these backlogs Yijm (t), node i finds the
pair (j, m) for which Yijm (t) is maximum (ties are broker
arbitrarily). Then, she allocates her service token to user
j ∈ Ni and she is paid in credit of type m. Notice that since
Xjj (t) = 0, ∀ t, in this step user i will not select to be paid
in credit of user j. This strategy allows user i to serve her
neighbor with the largest difference in any type of credit.
Accordingly, the credit backlogs are adjusted as follows:
• The credit of user j who received the service decreases,
Xjm (t) = Xjm (t − 1) − 1 .
(10)
•
The credit of user i who offered the service increases,
Xim (t) = Xim (t − 1) + 1 .
•
(11)
where when m = i, we do not need to increase the Xii
counter, since it is always set to Xii (t) = 0, ∀ t.
We increase the relay counter,
Dij (t) = Dij (t − 1) + 1 .
(12)
If in the previous step user i could not identify any neighbor
j ∈ Ni for which Xjm (t) > 0, m ∈ N \ {i}, then user i
serves her neighbor j ∈ Ni for which Xij (t) is minimum.
That is, gives priority to the user of which she currently has
the smallest credit backlog. Accordingly, we set,
Xij (t) = Xij (t − 1) + 1,
(13)
Dij (t) = Dij (t − 1) + 1 .
(14)
Fig. 2. A network with 10 nodes, partitioned in 4 price sets, and
¯ 1∗ = 15.65,
creating 2 cooperating groups. Received average tokens: R
¯ 2∗ = 25.54, R
¯ 3∗ = 38.33, R
¯ 4∗ = 31.29, R
¯ 5∗ = 51.1, R
¯ 6∗ = 19.55,
R
∗
¯ 7∗ = 64, R
¯ 8∗ = 11.81, R
¯ 9∗ = 6.18, R
¯ 10
R
= 23.48.
and
The above steps (9) -(14) are continuously executed upon the
creation of a service token in any node. From the above analysis it is clear that this credit-based service exchange scheme
is lightweight and suitable for decentralized implementation,
as it significantly departs from traditional pricing mechanisms.
For example, each service token is exchanged with one service
credit, i.e., there is no need to determine the "price" of each
service token with respect to the credits. Also, it is not required
to have a clearing house to set prices for each token.
C. The Impact of Credit Control
A key issue in this model is the amount of credit each
user can issue. In the above machinery, we assume that each
user can always pay a service token with credit of her own
type, i.e., the credit she creates. However, as we show in the
numerical results section, in certain cases this may not be
desirable. For example, consider a two node network where
only the one user creates service tokens and exchanges them
with the service credit that the other user continuously issues.
For these scenarios, one may prefer to set an upper limit
on the amount of credit a user generates, so as to avoid
an ever increasing "debt", which in turn implies very large
asymmetries in resource allocations among the nodes.
To address this issue, we only have to modify the machinery
presented above, by introducing the credit control parameter
L ∈ R+ . Then, when each user i determines which of her
neighbors she will serve, she excludes those having produced
(or, issued) already more than L service credits. Obviously,
this modified algorithm presumes the existence of an accounting mechanism for informing each user for the total issued
credit of every other user in the network3 .
The value of parameter L determines in a way the balance
between the efficiency and the fairness of the market. That is,
when L is very large, or there is no credit control, the users
offer to each other all the service tokens they generate. This
3 However, if the nodes are considered benign, then there is no need for
such an accounting mechanism, as every node is aware of the total credit she
has issued an can refrain from exceeding the credit control parameter L.
Fig. 3. A network with 13 nodes, 6 price sets, and 3 cooperating
¯ 1∗ = 26, R
¯ 2∗ = 20, R
¯ 3∗ = 39.74, R
¯ 4∗ =
groups. Received tokens: R
∗
∗
∗
∗
¯
¯
¯
¯
¯ 9∗ =
42.78, R5 = 93.49, R6 = 14.97, R7 = 30.38, R8 = 20.96, R
∗
∗
∗
∗
¯ 10
¯ 11
¯ 12
¯ 13
30.38, R
= 4.28, R
= 160, R
= 6.25, and R
= 33.75. We
∗
∗
∗
have 6 level of prices: ρ¯12
= ρ¯13
= 0.25, ρ¯4∗ = ρ¯6∗ = ρ¯8∗ = ρ¯10
=
0.4278, ρ¯2∗ = 0.7692, ρ¯1∗ = 2.3373, ρ¯3∗ = ρ¯5∗ = ρ¯7∗ = ρ¯9∗ = 1.3,
∗
ρ¯11
= 4.
increases the services the market offers to the participants, but
may result in highly asymmetric prices. On the other hand,
small values of L yield more balanced exchanges (price values
are closer to one) but this is achieved by having some users
not allocating all their tokens.
IV. N UMERICAL R ESULTS
In this section we present several representative examples,
using both arbitrary and specific structured graphs. Our goal
is to demonstrate the convergence of the asynchronous best
response algorithm (Algorithm 1) to the respective exchange
equilibrium, which coincides with the max-min average token
allocation. For verifying the lex-optimality of the resulting
equilibriums, we used a lexicographic optimization algorithm
such as the one in [11]. Additionally, we present several
examples of the credit-based service exchange algorithm, with
or without the usage of the credit control parameter L.
A. Best Response Algorithms
In the first example of Fig. 2 we present a network with
N = 10 nodes. Next to each node i we depict her token
¯ i = λi . The solid lines represent the physical
generation rate D
connections and the dotted arrows denote the token exchanges.
First, observe that not all neighboring nodes exchange tokens.
For example, nodes 6 and 7 do not serve each other. Moreover,
at the equilibrium, each node exchanges tokens only at a
certain price, which is the same for all her neighbors with
whom she interacts. In particular, the exchange ratios (prices)
for the nodes in this example are ρ¯8∗ = ρ¯9∗ = 0.2813,
∗
ρ¯1∗ = ρ¯4∗ = ρ¯6∗ = ρ¯10
= 0.7826, ρ¯2∗ = ρ¯3∗ = ρ¯5∗ = 1.2778,
∗
ρ¯7 = 3.5556.
Fig. 4. Convergence results for Algorithm 1, for the networks of Fig.
2 (left), and Fig. 3 (right).
Fig. 5. Left: for this complete graph, the prices are equal to 1 and
all nodes cooperate with each other. Right: for the ring graph there
are two levels of prices with product equal to 1.
Notice that the nodes can be classified in different sets,
based on their prices. In the figure we have used different
colours to mark the nodes with the same price (ranging from
white to dark, as prices increase). In this example, we have
K = 4 price levels. It is interesting to notice that each node
interacts only with her neighbors who are exchanging tokens
in the lowest price (e.g., node 6 interacts with 2 and 5 but not
with node 7). Moreover, the prices of the interacting nodes are
not arbitrary, but instead, they yield a product equal to 1. For
example ρ¯7∗ · ρ¯9∗ = 1 and ρ¯3∗ · ρ¯4∗ = 1. This means that the
network is partitioned in distinct groups of nodes, and there
is no interaction among nodes belonging to different groups.
For Figure 2, these groups comprise nodes {1, 2, 3, 4, 5, 6, 10}
and {7, 8, 9}.
Moreover, in each of these groups, there are only two
different price levels (for all their members). Notice that
the nodes with the cheapest prices cooperate only with the
nodes with the most expensive prices, the nodes with the
second cheapest prices cooperate only with the second most
expensive nodes, and so on. For example, in Figure 3, we
have 13 nodes which - at the equilibrium - are partitioned in
3 sets: {1, 2}, {3, 4, 5, 6, 7, 8, 9, 10}, and {11, 12, 13}. Again,
the nodes exchange tokens only with their lowest-price neighbors, and certain cooperation groups are formed based on the
price ordering. Additionally, there are interesting topological
properties. In particular, observe that nodes with the lowest
prices are not connected with each other, and have links only
with the most expensive nodes.
In Figure 4 we present the convergence of Algorithm 1
for the above two networks. In the horizontal axis we depict
the actual time (e.g., in seconds) and in the vertical axis the
different prices for each network. We can see that the prices
converge to the equilibrium values quite fast, i.e., after 20-30
seconds or, equivalently, after 500-1000 total generated tokens.
Finally, Fig. 5 depicts the token exchange and the prices for
a complete and a ring graph. Notice that in the complete
graph there is only one price level ρ¯ ∗ = 1, i.e., each node
receives resources equal to her contribution. This result is due
to the graph structure (complete graph) and the specific token
generation rates. For example, if there was one node having
token generation rate larger than the total rates of all the other
nodes, then the equilibrium would comprise two different price
levels.
In Figure 6, we present the results for a complete graph as
the one in Fig. 5, where here we have assumed that node 4 has
a token generation rate that is larger than the aggregate rates
of all the other nodes in the graph. We see that this changes
drastically the equilibrium point. Namely, all the other nodes
exchange tokens only with node 4 who is now having a lower
price. Therefore, we have two different price sets in this case.
Notice again that the product of the different prices is equal
to one, and that the node with the lowest price is independent
(here comprised only by node 4). Moreover, the average token
allocations are as expected. That is, every node apart from
¯ i4 = λi ,
node 4 allocates to the latter all her tokens, hence D
∀i ∈ N \{4}, where the token generation rates are shown next
¯ 41 = 21.9985,
to each node. Node 4 responds with the rates D
¯
¯
¯
¯ 46 =
D42 = 28.5969, D43 = 18.6992, D45 = 43.9916, D
¯
¯
38.4970, D47 = 14.2921, D48 = 53.8859.
Fig. 6. A complete graph with 8 nodes, partitioned in 2 price sets,
and creating 1 cooperating group. Average prices are: ρ¯1∗ = ρ¯2∗ =
ρ¯3∗ = ρ¯5∗ = ρ¯6∗ = ρ¯7∗ = ρ¯8∗ = 1.0999 and ρ¯4∗ = 0.9092.
In Figure 7 we depict a network with 6 nodes. At the
equilibrium there are 3 different price levels, and the nodes
are partitioned in two different cooperating groups. Namely,
we have ρ¯1∗ = ρ¯6∗ = 0.5, ρ¯3∗ = ρ¯4∗ = 1, ρ¯2∗ = ρ¯5∗ = 1.
Finally, in Figure 8 we present a tandem network of 8 nodes.
There are 6 different prices at the equilibrium, as follows:
ρ¯8∗ = 0.2653, ρ¯4∗ = ρ¯6∗ = 0.4222, ρ¯2∗ = 0.7692, ρ¯1∗ = 1.3,
ρ¯3∗ = ρ¯5∗ = 2.3684, ρ¯7∗ = 3.76921. Observe that the product
of the prices among the cooperating nodes is equal to one, and
the cheapest nodes are only connected to the most expensive
nodes. In Figure 9 we present the convergence of the prices
for the network of Figure 7. We can see that the prices
converge quite fast to their equilibrium values. Similarly, the
price convergence for the network of Figure 8 is depicted in
Figure 10.
Fig. 7. A network with 6 nodes, partitioned in 4 price sets, and
creating 2 cooperating groups.
Fig. 10. Convergence results for Algorithm 1, for network in Fig. 8.
Fig. 8. A tandem network with 8 nodes, partitioned in 6 price sets,
and creating 3 cooperating groups.
B. Credit-based Algorithms
In this subsection we present several numerical examples
of the credit-based, backpressure-inspired, heuristic service
allocation algorithm. We begin with the network of Figure 11
for a symmetric network of 4 nodes, where, however the nodes
have different service token generation rate.s In particular,
for every 145 slots, it is T1 = 20, T2 = 30, T3 = 35, and
T4 = 60. We study the system operation for a time horizon
of Tmax = 80 · 103 · 145 slots, where each user allocates
her service tokens according to the mechanism described in
Subsection III-B. We find that on average the users allocate
¯ 1 = 20.01, D
¯ 2 = 30.00, D
¯ 3 = 34.99, D
¯ 4 = 60.00, and
D
¯
¯
¯ 3 = 35,
they respectively receive R1 = 20.01, R2 = 30.00, R
¯
¯
¯
R4 = 59.99. That is, it holds Ri = Di , ∀ i ∈ N .
Next, we consider the network of Figure 12 where the nodes
have different capacities, and the links are asymmetric. For
example, node 2 can serve node 3, but node 3 can only serve
node 4. We run the credit-based heuristic algorithm for a time
horizon of Tmax = 50, 000.00 · 121 slots. The average service
¯ 1 = 0, R
¯ 2 = 11, R
¯ 3 = 10, R¯4 = 99.99;
each user receives is R
¯
¯ 2 = 10,
and the service they allocate to others: D1 = 10.01, D
¯
¯
D3 = 99.99, D4 = 0.99. Now, assume that we set the credit
control parameter to L = 5000. In this case, the users allocate
¯ 1 = 9.17, D
¯ 2 = 9.99, D
¯ 3 = 1.02, and D
¯4 =
on average D
¯
¯
¯
0.92, and they receive R1 = 9.07, R2 = 10.09, R3 = 0.92,
Fig. 9. Convergence results for Algorithm 1, for network in Fig. 7.
Fig. 11. A four node graph with symmetric links, and different token
generation rates.
¯ 4 = 1.02. The same results hold for L = 1000. When L is
R
further increased then the algorithm allows larger differences
¯ i and D
¯ i, ∀ i ∈ N .
among R
Fig. 12. A four node graph with asymmetric links and different token
generation rates, i.e., for every 121 slots, it is T1 = 10, T2 = 10, T3 = 100,
T4 = 1. The prices without credit: ρ¯1 = 0, ρ¯2 = 1.1, ρ¯3 = 0.1, ρ¯4 = 101,
and with credit: ρ¯1 = 0.98, ρ¯2 = 1.01, ρ¯3 = 0.90, ρ¯4 = 1.11.
Finally, in Figure 13 we present another asymmetric network where for every 1040 slots, the nodes generate tokens
with proportions T1 = 10, T2 = 10, T3 = 1000, T4 = 10,
T5 = 10. Running the credit-based heuristic algorithm with
the credit control parameter set to L = 1.000, we get the
¯ 1 = 9.72, R
¯ 2 = 10.04, R
¯ 3 = 0.21,
following results: R
¯
¯
¯
¯ 2 = 9.93,
R4 = 0.405, R5 = 0.205, and D1 = 10.04, D
¯
¯
¯
D3 = 0.4, D4 = 0.205, D5 = 0.005. Notice that with this
algorithm the nodes do not allocate their entire resources due
to the credit control parameter L, and hence some other nodes
do not receive as many service tokens as it is possible.
This observation motivates the employment of different
control parameters for different nodes. For example, if we
increase the credit control parameter for nodes 4 and 5 to
¯ 1 = 8.94, R
¯ 2 = 10.02, R
¯ 3 = 1.04,
L = 5.000, then we get: R
¯ 4 = 2.02, R
¯ 5 = 1.02, and D
¯ 1 = 10.02, D
¯ 2 = 9.98,
R
¯ 3 = 2, D
¯ 4 = 1.02, D
¯ 5 = 0.02. The updated prices are
D
ρ¯1 = 0.89, ρ¯2 = 1.00, ρ¯3 = 0.52, ρ¯4 = 1.98, ρ¯5 = 51.
And if we further increase the credit allowance for these two
¯ 1 = 6.96, R
¯ 2 = 10.03,
nodes, at L = 15.000, then we have R
¯ 3 = 3.03, R
¯ 4 = 6.05, R
¯ 5 = 3.05, and D
¯ 1 = 10.03,
R
Fig. 13. A five node network with T1 = 10, T2 = 10, T3 = 1000, T4 = 10,
T5 = 10. The prices with the credit-based heuristic algorithm with the control
parameter are: ρ¯1 = 0.97, ρ¯2 = 1.01, ρ¯3 = 0.53, ρ¯4 = 1.97, ρ¯5 = 41.
¯ 2 = 9.99, D
¯ 3 = 6, D
¯ 4 = 3.05, D
¯ 5 = 0.05. The new prices
D
are ρ¯1 = 0.69, ρ¯2 = 1.00, ρ¯3 = 0.51, ρ¯4 = 1.98, ρ¯5 = 55.
That is, as we increase L for nodes 4 and 5, node 4 receives
more service from node 3 and node 5 from node 4.
V. R ELATED W ORKS
The problem of service exchange in communication networks is of paramount importance and has been considered
in different contexts, such as routing in ad hoc networks
[18], Wifi sharing models [17], cooperative mesh networks
[6], [7], and peer-to-peer (P2P) content sharing overlays [1].
Also, similar models arise in several other cases (not related to
communication networks), where different users exchange idle
or underutilized resources [9]. The proposed collaboration solutions most often require a reputation or a centralized creditbased mechanism, for accounting and payment purposes, or
complete information about the nodes’ resources and needs.
Clearly, such approaches exhibit high complexity, and do not
capture the dynamics of this service exchange market.
Best response algorithms have been considered in various
context. For example, reference [2] showed that a synchronous,
time slotted proportional bandwidth allocation algorithm for
P2P networks, converges relatively fast to the system’s fixed
point equilibrium. This scheme resembles the typical tatonnement process [15], which, however, requires the circulation
of explicit price signals. On the contrary, our analysis considers a dynamic best response algorithm (without prices), with
discrete non-divisible allocation of resources, and unknown
resource availability.
Besides, we explain and demonstrate through representative examples that the equilibrium has a rich structure, and
coincides with the fair, lex-optimal allocation of the nodes’
resources. Additionally, the proposed credit-based service exchange scheme differs substantially from previous mechanisms
since it is fully decentralized and lightweight in terms of required message passing. Finally, our analysis is also applicable
in graphical economies [10], which extend the classical Arrow
- Debreu economies [15], by imposing graph constraints on
the subsets of buyers and sellers that can trade.
VI. C ONCLUSIONS
We consider a fundamental trading or bartering model,
where the nodes have a dual role of resource provider and
consumer. A basic property of the model is that the nodes’
interactions are constrained by a graph. A simple myopic
best response dynamic algorithm was proposed, that operates
in the time domain, asynchronously and without any prior
information regarding the needs and the resources of other
nodes. We showed numerically that this algorithm converges to
the max-main fair allocation of the nodes’ resources. Finally,
we considered an enhanced setting where the nodes can
exchange service credit with service tokens. A backpressureinspired heuristic algorithm was introduced, aiming to reduce
the credit backlogs. We are currently working on the formal
convergence proofs of the proposed schemes.
VII. ACKNOWLEDGEMENT
This research has been co-financed by the European Union
(European Social Fund - ESF) and Greek national funds
through the Operational Program ”Education and Lifelong
Learning” of the National Strategic Reference Framework
(NSRF) - Research Funding Program: Thales, Investing in
knowledge society through the European Social Fund, for the
project SOCONET. This work is also supported by the EINS,
the Network of Excellence in Internet Science, through FP7ICT grant 288021 from the European Commission.
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