Designing incentive schemes based on intervention: The case of imperfect monitoring

Jaeok Park, Mihaela Van Der Schaar

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

In this paper, we propose a class of incentive schemes based on intervention. We develop a general game-theoretic framework for the design of intervention schemes under imperfect monitoring. We examine a model of slotted multiaccess communication to illustrate our framework. In this model, an intervention device monitors the behavior of agents for a period called the test phase and takes an intervention action which affects agents for the remaining period called the intervention phase. We analyze the problems of designing an optimal intervention rule given a length of the test phase and choosing an optimal length of the test phase. Intervention schemes can induce cooperative behavior by applying intervention following signals with a high likelihood of deviation. Increasing the length of the test phase has two counteracting effects: It improves the quality of signals, but at the same time it weakens the impact of intervention due to increased delay.

Original languageEnglish
Title of host publicationGame Theory for Networks - Second International ICST Conference, GAMENETS 2011, Revised Selected Papers
Pages221-232
Number of pages12
DOIs
Publication statusPublished - 2012 Jul 31
Event2nd International ICST Conference on Game Theory in Networks, GAMENETS 2011 - Shanghai, China
Duration: 2011 Apr 162011 Apr 18

Publication series

NameLecture Notes of the Institute for Computer Sciences, Social-Informatics and Telecommunications Engineering
Volume75 LNICST
ISSN (Print)1867-8211

Other

Other2nd International ICST Conference on Game Theory in Networks, GAMENETS 2011
CountryChina
CityShanghai
Period11/4/1611/4/18

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All Science Journal Classification (ASJC) codes

  • Computer Networks and Communications

Cite this

Park, J., & Van Der Schaar, M. (2012). Designing incentive schemes based on intervention: The case of imperfect monitoring. In Game Theory for Networks - Second International ICST Conference, GAMENETS 2011, Revised Selected Papers (pp. 221-232). (Lecture Notes of the Institute for Computer Sciences, Social-Informatics and Telecommunications Engineering; Vol. 75 LNICST). https://doi.org/10.1007/978-3-642-30373-9_16