Multifactorial optimization system and method

• US 8,144,619 B2
• Filed: 10/03/2006
• Issued: 03/27/2012
• Est. Priority Date: 10/04/2005
• Status: Active Grant

• Current Assignee: Steven Mark Hoffberg
• Original Assignee: Steven Mark Hoffberg
• Inventors: Hoffberg, Steven M.
• Primary Examiner(s): Mattis, Jason
• Assistant Examiner(s): GUADALUPE CRUZ, AIXA AMYR
• Application Number:
  US12/089,277
• Publication Number:
  US 20080262893A1
• Time in Patent Office: 2,002 Days
• Field of Search: None
• US Class Current: 370/254
• 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 method of optimizing relationships between a set of agents with respect to a set of allocable resources, at least one of the set of allocable resources having an associated risk, 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 associated with a resource, independent of the respective associated allocable resource, may be transferred from one agent to another agent in exchange for value;

(d) selecting, using at least one automated processor, in a unitary optimization process, 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,

wherein a portion of an optimal allocation of resources comprises allocable resources being undertaken by a risk transference agent which is not a consumer of the allocable resources and is not an originator of the allocable resources.

2. The method according to claim 1, wherein a resource comprises a communication opportunity.

3. The method according to claim 1, wherein an agent has a subjective resource value for failing to gain an allocation of a resource.

4. The method according to claim 1, wherein an agent has an option to defect from the organization.

5. The method according to claim 1, wherein an agent has multipart resource requirement, wherein an optimal resource allocation requires allocation of a plurality of resource components.

6. The method according to claim 1, wherein a risk transference agent insures a risk.

7. The method according to claim 1, wherein a risk transference agent arbitrages a risk.

8. The method according to claim 1, 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.

9. The method according to claim 1, wherein a risk transference agent speculatively acquires resources.

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

(a) determining both 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, using at least one automated processor, a unitary 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.

11. A non-transitory computer readable medium storing instructions adapted to control an automated processor to perform a method of optimizing relationships between a set of agents with respect to a set of allocable resources, at least one of the set of allocable resources having an associated risk, comprising:

(a) determining at least one of a subjective resource value function, and a subjective risk tolerance value function of an agent associated with a resource, independent of the respective associated allocable resource;

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

(c) interfacing with at least one risk transference mechanism, wherein a risk may be transferred, independent of an associated resource, from the agent to another agent in exchange for value;

(d) selecting, in a unitary process, an optimal allocation of resources and assumption of risk by engaging in a maximization, within an error limit, of 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,

wherein a portion of an optimal allocation of resources comprises allocable resources being undertaken by a risk transference agent which is not a consumer of the allocable resources and is not an originator of the allocable resources.

12. The non-transitory computer readable medium according to claim 11, wherein a resource comprises a communication opportunity.

13. The non-transitory computer readable medium according to claim 11, wherein the set of agents comprises at least one of a risk transference agent which insures a risk, and a risk transference agent which arbitrages a risk, on behalf of the agent.

14. The non-transtory computer readable medium according to claim 13, 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, and the risk transference agent undertakes to fulfill the second portion.

15. A non-transitory computer readable medium storing instructions adapted to control at least one automated processor to perform a method of optimizing an allocation of resources and deference from contesting the allocation of resources to other agents by agents with a positive utility for at least one resource at an allocation value, 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.

16. A method of routing a communication, comprising:

defining a set of available communication resources, each being associated with an inclusion cost for a communication function;

defining an acceptable risk tolerance to a principal that a network topology comprising a plurality of communication resources will successfully perform a communication function, and an acceptable aggregate communications cost to the principal for the at least one available communication resource;

defining a network topology comprising a plurality of communication resources, having a respective communications cost within the acceptable aggregate communications cost;

transferring at least a portion of a risk that the plurality of communications resources will successfully perform the communication function from the principal to a risk transference agent;

performing the communication function in accordance with the network topology through at least one communication device; and

if the network topology fails to successfully perform the communication function, accounting for the at least a portion of the transferred risk between the risk transference agent and the principal,

wherein the risk transference agent does not consume the at least one communication resource, and the at least a portion of the risk that the plurality of communications resources will successfully perform the communication function is transferred from the principal to the risk transference agent independent of the defined network topology.

17. The method according to claim 16, wherein a plurality of principals compete in an auction for allocation of at least one communication resource.

18. The method according to claim 16, further comprising compensating, by the principal to the risk transference agent, for a transferred risk such that a sum of an actual communications cost and a risk transference cost is less than or equal to the acceptable aggregate cost, and a residual risk maintained by the principal is less than or equal to the acceptable risk tolerance.

19. The method according to claim 18, wherein a plurality of principals compete in an auction for allocation of at least one communication resource based on an auction bid from each principal, the bid price from each principal being less than or equal to a respective principal'"'"'s acceptable aggregate cost, at least one auction bid being dependent on a risk transference cost.