Optimal Prizes for All-Pay Contests in Heterogeneous Crowdsourcing

Optimal Prizes for All-Pay Contests in Heterogeneous Crowdsourcing
Title:
Optimal Prizes for All-Pay Contests in Heterogeneous Crowdsourcing
Other Titles:
2014 IEEE 11th International Conference on Mobile Ad Hoc and Sensor Systems
Keywords:
Publication Date:
28 October 2014
Citation:
T. Luo, S. S. Kanhere and H. P. Tan, "Optimal Prizes for All-Pay Contests in Heterogeneous Crowdsourcing," 2014 IEEE 11th International Conference on Mobile Ad Hoc and Sensor Systems, Philadelphia, PA, 2014, pp. 136-144. doi: 10.1109/MASS.2014.66
Abstract:
Incentive is key to the success of crowd sourcing which heavily depends on the level of user participation. This paper designs an incentive mechanism to motivate a heterogeneous crowd of users to actively participate in crowd sourcing campaigns. We cast the problem in a new, asymmetric all-pay contest model with incomplete information, where an arbitrary n of users exert irrevocable effort to compete for a prize tuple. The prize tuple is an array of prize functions as opposed to a single constant prize typically used by conventional contests. We design an optimal contest that (a) induces the maximum profit -- total user effort minus the prize payout -- for the crowdsourcer, and (b) ensures users to strictly have incentive to participate. In stark contrast to intuition and prior related work, our mechanism induces an equilibrium in which heterogeneous users behave independently of one another as if they were in a homogeneous setting. This newly discovered property, which we coin as strategy autonomy (SA), is of practical significance: it (a) reduces computational and storage complexity by n-fold for each user, (b) increases the crowdsourcer's revenue by counteracting an effort reservation effect existing in asymmetric contests, and (c) neutralizes the (almost universal) law of diminishing marginal returns (DMR). Through an extensive numerical case study, we demonstrate and scrutinize the superior profitability of our mechanism, as well as draw insights into the SA property.
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PublisherCopyrights
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Description:
(c) 2014 IEEE. Personal use of this material is permitted. Permission from IEEE must be obtained for all other users, including reprinting/ republishing this material for advertising or promotional purposes, creating new collective works for resale or redistribution to servers or lists, or reuse of any copyrighted components of this work in other works.
ISSN:
2155-6806
2155-6814
ISBN:
978-1-4799-6035-4
978-1-4799-6036-1
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