Group for Research in Decision Analysis

Incentive mechanism design using linear matrix inequality approach

Pegah Rokhforoz School of Electrical and Computer Engineering, University of Tehran, Iran, and ETH Zurich, Switzerland

Pegah Rokh Foroz

Presentation on YouTube

We consider a centralized multi-agent optimization problem with coupling constraint among agents, where the information is distributed between agents who are strategic, selfish and have the private value functions. To achieve a global optimal solution, we propose an incentive mechanism based on a message space and payment function, which makes a non-cooperative game among agents where an individual utility function of each agent aligns with the centralized optimization problem. We construct a family of payment function, which leads to a potential game among agents and ensures the strongly Nash implementation, budget balance and individual rationality of the induced mechanism using the linear matrix inequality approach.