Trusted kernel-based coalition formation

Abstract

We define Trusted Kernel-based Coalition Formation as a novel extension to the traditional kernel-based coalition formation process which ensures agents choose the most reliable coalition partners and are guaranteed to obtain the payment they deserve. To this end, we develop an encryption-based communication protocol and a payment scheme which ensure that agents cannot manipulate the mechanism to their own benefit. Moreover, we integrate a generic trust model in the coalition formation process that permits the selection of the most reliable agents over repeated coalition games. We empirically evaluate our mechanism when iterated and show that, in the long run, it always chooses the coalition structure that has the maximum expected value and determines the payoffs that match their level of reliability.