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A VCG-based Fair Incentive Mechanism for Federated Learning

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 Added by Mingshu Cong
 Publication date 2020
and research's language is English




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Federated learning (FL) has shown great potential for addressing the challenge of isolated data islands while preserving data privacy. It allows artificial intelligence (AI) models to be trained on locally stored data in a distributed manner. In order to build an ecosystem for FL to operate in a sustainable manner, it has to be economically attractive to data owners. This gives rise to the problem of FL incentive mechanism design, which aims to find the optimal organizational and payment structure for the federation in order to achieve a series of economic objectives. In this paper, we present a VCG-based FL incentive mechanism, named FVCG, specifically designed for incentivizing data owners to contribute all their data and truthfully report their costs in FL settings. It maximizes the social surplus and minimizes unfairness of the federation. We provide an implementation of FVCG with neural networks and theoretic proofs on its performance bounds. Extensive numerical experiment results demonstrated the effectiveness and economic reasonableness of FVCG.



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Federated learning (FL) serves as a data privacy-preserved machine learning paradigm, and realizes the collaborative model trained by distributed clients. To accomplish an FL task, the task publisher needs to pay financial incentives to the FL server and FL server offloads the task to the contributing FL clients. It is challenging to design proper incentives for the FL clients due to the fact that the task is privately trained by the clients. This paper aims to propose a contract theory based FL task training model towards minimizing incentive budget subject to clients being individually rational (IR) and incentive compatible (IC) in each FL training round. We design a two-dimensional contract model by formally defining two private types of clients, namely data quality and computation effort. To effectively aggregate the trained models, a contract-based aggregator is proposed. We analyze the feasible and optimal contract solutions to the proposed contract model. %Experimental results demonstrate that the proposed framework and contract model can effective improve the generation accuracy of FL tasks. Experimental results show that the generalization accuracy of the FL tasks can be improved by the proposed incentive mechanism where contract-based aggregation is applied.
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