This paper describes the use of market mechanisms for resource allocation in pervasive sensor applications to maximize their Value of Information (VoI), which combines the objectively measured Quality of Information (QoI) with the subjective value assigned to it by the users. The unique challenge of pervasive sensor applications that we address is the need for adjusting resource allocation in response to the changing application requirements and evolving sensor network conditions. We use two market mechanisms: auctions at individual sensor nodes to optimize routing, and switch options to optimize dynamic selection of sensor network services as well as switching between modes of operation in pervasive security applications. We also present scenarios of transient congestion management and home security system to motivate the proposed techniques
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