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...ed the existence of a large fraction of free riders in the file sharing network Gnutella. The problem of selfish behavior in peer-to-peer systems has been a hot topic in p2p research ever since, e.g. =-=[8, 12]-=-, and many mechanisms to encourage cooperation have been proposed, for example in [6, 7, 11, 13, 14]. BitTorrent [4] has incorporated a fairness mechanism from the beginning. Although this mechanism h...

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...tic solution focusing on a global storage system only. In contrast, our work addresses file transfer and bandwidth allocation in a P2P network, and we use the approach of algorithmic mechanism design =-=[12, 13, 17]-=- to design a desirable competition game for our system. 1.2 Paper organization The balance of the paper is organized as follows. In Section 2, we give a general overview of how the node providing info...

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...tacks and discuss solutions. The final section presents our conclusions. 2 ECONOMICS BACKGROUND Much of our analysis of p2p cooperation is based on economic models of game theory and mechanism design =-=[17]-=-. In this section, we briefly review some critical terms and concepts as they relate to p2p systems. An economic game is a model of interaction between players in which the actions of any player influ...

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... relates to robustness against adversarial or faulty agents: the current solution is fragile in this sense, with its equilibrium properties relying on other agents following the protocol. Some papers =-=[44, 3, 71]-=- provide robustness to mixture models (e.g. some rational, some adversarial) but we are not aware of any work with these mixture models in the context of efficient social choice. Another interesting d...

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...cost to other participants, or at some loss of mechanism functionality. There are documented instances of rational manipulation in Internet algorithms that negatively affect other users of the system =-=[10]-=-. For this reason, one should be interested in the faithfulness properties of a system, and in the provided client software. Informally, a system is robust to rational manipulation, and therefore fait...

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...o the edges of the network to allow for the development and deployment of rich and unanticipated applications [21]. to improve the utility of an outcome for an individual user) is the norm in systems =-=[4, 25]-=-. Looking ahead, we believe that it is essential to embrace incentive in the design of systems that sustain useful coordinated behavior in the long-term. Self-interest manifestes itself in many compel...

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...sulting scenario “the tragedy of the commons” [21]. Ideally, we would like to design a system where nodes, acting in their own best interest, behave collectively to maximize the common welfare. Designing such a system without a centralized authority that has complete knowledge of the system becomes a distributed algorithmic mechanism design (DAMD) problem [12]. DAMD is a current area of study that combines computational tractability in theoretical computer science with incentive-compatible mechanism design in the economics literature. It provides a useful framework for considering p2p systems [27,28,33]. This paper considers ⋆ This research was supported in part by Texas ATP (003604-0079-2001), by NSF (ANI0225660, http://project-iris.net) and by gifts from Microsoft Research and from Intel Research. incentives-based mechanisms that ensure fair sharing, focusing on cooperative systems where network bandwidth is the contented resource. One way to enforce fairness is to have, for each node in the system, a set of other nodes account for that node’s actions and approve requests according to the system’s policy. KARMA [36] is an example of such a system. However, coordinating the actions of this ...