Land Allocation : Intelligent Coordination Mechanisms for a Hedonic Game

✍ Scribed by Sumit Chakraborty

• Publisher: Business Analytics Research Lab India
• Year: 2012
• Tongue: English
• Leaves: 13
• Edition: 1
• Category: Library

✦ Synopsis

Abstract: A (or a group of) selling agent wants to allocate and
sell a (or a set of) parcel of land optimally and fairly to a buying
agent within the capacity constraint of the selling agent and
budget constraint of the buying agent. This problem has been
solved by combining the concept of algorithmic cooperative game
theory and financial cryptography. This is an approach for a
group of decision-making agents to reach a mutually beneficial
agreement through compromise and stable matching of
preference. The paper presents a cooperative game and a set of
algorithmic coordination mechanisms: SBSS, SBMS (for
collective and non-collective bargaining in holdout problem) and
MBSS. The game is characterized by a set of agents, inputs,
strategic moves, revelation principle, payment function and
outputs. The coordination mechanisms are designed based on
domain planning, rational fair data exchange and compensation
negotiation. These mechanisms preserve the privacy of strategic
data through secure multi-party computation (SMC). The
mechanisms are analyzed from the perspectives of revelation
principle, computational intelligence and communication
complexity. The communication complexity depends on the time
constraint of the negotiating agents, their information state and
the number of negotiation issues. The computational complexity
depends on the valuation of pricing plan, compensation
estimation and private comparison. It is a mixed strategy game;
both sequential and simultaneous moves can be applied
intelligently to search a neighborhood space of core solutions.
Categories and Subject Descriptors Cooperative game
General Terms Algorithmic mechanism
Keywords: Cooperative game, Coordination mechanisms,
Computational intelligence, Valuation, Hedonic pricing,
Compensation, Financial cryptography.

✦ Table of Contents

The paper is organized as follows. Section 2 defines a cooperative
game and a set of algorithmic coordination mechanisms (SBSS,
SBMS and MBSS) for the game. Section 3 analyzes the
cooperative game and the coordination mechanisms. An
automated information system should give necessary support to
the proposed mechanisms through its computing, security, data,
communication and application schema; section 4 presents these
schema in brief. Section 5 concludes the paper.