Multifactorial Optimization System and Method

• US 20080262893A1
• Filed: 10/03/2006
• Published: 10/23/2008
• Est. Priority Date: 10/04/2005
• Status: Active Grant

• Current Assignee: Steven Mark Hoffberg
• Original Assignee: Steven Mark Hoffberg
• Inventors: Hoffberg, Steven M.
• Granted Patent: US 8,144,619 B2
• Time in Patent Office: Days
• US Class Current: 705/8
• CPC Class Codes: G06Q 10/0631 Resource planning, allocation, distributing or scheduling for enterprises or organisations
• CPC Class Codes: G06Q 10/0635 Risk analysis of enterprise or organisation activities
• CPC Class Codes: G06Q 10/06375 Prediction of business process outcome or impact based on a proposed change
• CPC Class Codes: G06Q 10/103 Workflow collaboration or project management
• CPC Class Codes: G06Q 20/065 using e-cash
• CPC Class Codes: G06Q 20/22 Payment schemes or models
• CPC Class Codes: G06Q 20/40 Authorisation, e.g. identification of payer or payee, verification of customer or shop credentials; Review and approval of payers, e.g. check credit lines or negative lists
• CPC Class Codes: G06Q 30/0201 Market modelling; Market analysis; Collecting market data
• CPC Class Codes: G06Q 30/08 Auctions
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 50/188 Electronic negotiation
• CPC Class Codes: H04W 16/28 using beam steering
• CPC Class Codes: H04W 64/003 locating network equipment
• CPC Class Codes: H04W 72/541 using the level of interference
• CPC Class Codes: H04W 84/18 Self-organising networks, e.g. ad-hoc networks or sensor networks

Abstract

A method for providing unequal allocation of rights among agents while operating according to fair principles, comprising assigning a hierarchal rank to each agent; providing a synthetic economic value to a first set of agents at the a high level of the hierarchy; allocating portions of the synthetic economic value by the first set of agents to a second set of agents at respectively different hierarchal rank than the first set of agents; and conducting an auction amongst agents using the synthetic economic value as the currency. A method for allocation among agents, comprising assigning a wealth generation function for generating future wealth to each of a plurality of agents, communicating subjective market information between agents, and transferring wealth generated by the secure wealth generation function between agents in consideration of a market transaction. The method may further comprise the step of transferring at least a portion of the wealth generation function between agents.

Claims

1. A networking system comprising:

a network model, said model comprising a network parameter estimate;

a packet router, routing packets in dependence on said model; and

an arbitrage agent, to arbitrage a risk that said network parameter estimate is incorrect.

2. A method of routing a communication, comprising:

defining a set of available intermediary nodes, a plurality of members of the set being associated with a risk factor and an inclusion cost;

defining an acceptable communications risk tolerance and an acceptable aggregate communications cost;

defining a set of network topologies, each network topology employing a subset of members of the set of intermediary nodes, having a communications risk within the acceptable communications risk tolerance and a communications cost within the acceptable aggregate communications cost; and

routing a communication using one of the set of network topologies.

3. The method according to claim 2, further comprising the step of arbitraging a risk to increase a cost-benefit.

4. A method of routing a communication, comprising:

defining a source node, a destination node, and at least two intermediate nodes;

estimating a network state of at least one of the intermediate nodes;

arbitraging a risk with respect to an accuracy of the estimate of network state with an arbitrage agent;

communicating between said source and said destination; and

compensating said at least two intermediate nodes and said agent.

5. A method of optimizing relationships between a set of agents with respect to a set of allocable resources, comprising:

(a) for a plurality of agents, determining at least one of a subjective resource value function, and a subjective risk tolerance value function;

(b) providing at least one resource allocation mechanism, wherein a resource may be allocated on behalf of an agent in exchange for value;

(c) providing at least one risk transference mechanism, wherein a risk may be transferred from one agent to another agent in exchange for value;

(d) selecting an optimal allocation of resources and assumption of risk by maximizing, within an error limit, an aggregate economic surplus of the putative organization of agents;

(e) accounting for the allocation of resources and allocation of risk in accordance with the subjective resource value function and a subjective risk tolerance value function for the selected optimal allocation; and

(f) allocating resources and risk in accordance with the selected optimal organization.

6. The method according to claim 5, wherein a resource comprises a communication opportunity.

7. The method according to claim 5, wherein an agent has a subjective resource value for failing to gain an allocation of a resource.

8. The method according to claim 5, wherein an agent has an option to defect from the organization.

9. The method according to claim 5, wherein an agent has multipart resource requirement, wherein an optimal resource allocation requires allocation of a plurality of resource components.

10. The method according to claim 5, wherein a risk transference agent insures a risk.

11. The method according to claim 5, wherein a risk transference agent arbitrages a risk.

12. The method according to claim 5, wherein the optimal resource allocation comprises an explicit allocation of a first portion of component resources and an implicit allocation of a second portion of component resources, a risk transference agent undertaking to fulfill the second portion.

13. The method according to claim 5, wherein a risk transference agent speculatively acquires resources.

14. A method of optimizing an allocation of resources and deference from contesting the allocation of resources to other agents, comprising:

(a) determining a subjective resource value function, and a subjective deference value function for an agent with respect to a resource allocation within a community;

(b) selecting an optimal allocation of resources and deference by maximizing, within an error limit, an aggregate economic surplus of the community;

(c) allocating resources in accordance with the selected optimal organization; and

(d) accounting in accordance with the subjective resource value function, and subjective deference value function.

15. A method of optimizing an allocation of resources within members of a community, comprising:

(a) determining subjective resource value functions for a plurality of resources for members of the community;

(b) selecting an optimal allocation of resources, within an error limit, to maximize an aggregate economic surplus of the community;

(c) charging members of the community in accordance with the respective subjective resource value functions and member benefits;

(d) allocating at least a portion of the economic surplus resulting from the allocation to members who defer gaining a resource allocation benefit of the community.

16. A method of encouraging recruitment of entities into an auction, comprising:

(a) defining a set of prevailing parties and a transaction price;

(b) defining an economic surplus from the transaction; and

(c) distributing a portion of the economic surplus to auction participants not within the set of prevailing parties, in relation to a magnitude of an offer.

17. The method according to claim 16, wherein the auction is a combinatorial auction.

18. The method according to claim 17, wherein a plurality of suppliers transact with a plurality of buyers in a single transaction.

19. The method according to claim 16, wherein only bidders having a significant risk of being within the set of prevailing parties are distributed the portion of the economic surplus.

20. The method according to claim 19, wherein a portion of the economic surplus allocated is dependent on a risk of being within the set of prevailing parties.

21. The method according to claim 16, wherein bidders pay a bid fee.

22. The method according to claim 16, wherein the economic surplus is allocated to increase the liquidity of a market.

23. A method of optimizing a market, comprising:

(a) recruiting at least four parties comprising at least one buyer, at least one seller, and at least one deferring party;

(b) matching bidders with offerors to maximize a surplus; and

(c) allocating the surplus at least in part to the deferring party, to motivate deference.

24. An ad hoc communication node, comprising:

(a) an input for receiving communications and an output for generating communications; and

(b) a processor, for seeking an optimization of an ad hoc communication network, said processor determining a network state for a portion of the network and estimating a network state for a different portion of the network, said processor engaging in a transaction with another node for transferring a risk of an erroneous state estimation.