Formation of Stable and Efficient Social Storage Cloud

Abstract

In this paper, we study the formation of endogenous social storage cloud in a dynamic setting, where rational agents build their data backup connections strategically. We propose a degree-distance-based utility model, which is a combination of benefit and cost functions. The benefit function of an agent captures the expected benefit that the agent obtains by placing its data on others’ storage devices, given the prevailing data loss rate in the network. The cost function of an agent captures the cost that the agent incurs to maintain links in the network. With this utility function, we analyze what network is likely to evolve when agents themselves decide with whom they want to form links and with whom they do not. Further, we analyze which networks are pairwise stable and efficient. We show that for the proposed utility function, there always exists a pairwise stable network, which is also efficient. We show that all pairwise stable networks are efficient, and hence, the price of anarchy is the best that is possible. We also study the effect of link addition and deletion between a pair of agents on their, and others’, closeness and storage availability.

Resource Availability in the Social Cloud: An Economics Perspective

“…If agents and add the link ⟨ ⟩, then, agent ∈ ⧵ { , } experiences 1. positive spillover effect due to link addition if ( + ⟨ ⟩) > ( ), 2. negative spillover effect due to link addition if ( + ⟨ ⟩) < ( ), and 3. no spillover effect due to link addition if ( + ⟨ ⟩) = ( ). Mane et al (2019) show that the externalities (spillover effect) that agents experience is determined by their global resource availability. For the sake of completeness, we state the result in the context of resource sharing networks.…”

“…of services and workload balance. Another research trend (Mane et al, 2020b(Mane et al, , 2019(Mane et al, , 2014(Mane et al, , 2020aMoscibroda et al, 2011) focuses on endogenous social connections in terms of resource sharing network formation, the stability and efficiency analysis of these networks, and analysis of externalities in these resource sharing networks. For example, Mane et al (2020b) study social storage cloud formation in a strategic setting, where self-interested agents build a storage resource sharing network for maximizing their respective utilities.…”

“…This aspect can be outlined in terms of the spillover effect. Mane et al (2019) provide a necessary and sufficient condition under which an agent experiences positive or negative spillover effect. In Mane et al (2020a), the authors follow an empirical approach to study the role of network structure and size in determining spillover.…”

Resource availability in the social cloud: An economics perspective

“…In particular, Mane et al. (2020b, 2019) analyze the stability and efficiency analysis of these networks, and analysis of externalities by proposing degree‐based utility and degree–distance‐based utility functions. For example, Mane et al.…”

“…Mane et al. (2019) provide a necessary and sufficient condition under which an agent experiences positive or negative spillover effect. Mane et al.…”