The Economics of Internet of Things: An Information Market System

The Internet of Things (IoT) is one of the leading forces in modern-day technology. The concept has been proposed to be a new way of interconnecting a multiplicity of devices and rendering services to a variety of applications. According to the industry’s insiders, IoT will make it possible to link transport, energy, smart cities, and healthcare together. The purpose of this paper is to understand the economics of the Internet of Things. It is meant to shed light on how world IoT applications can affect the information market. When every sector and industry of the world has been connected via this technology, what will become of the ICT niche? The information economic approach is currently being adopted and presented with its possible applications in IoT. Firstly, this paper reviews the kinds of economic models that have been designed for IoT services. Secondly, it focuses on the two major subject matters of information economics that are critical to IoT. While one considers the value of the information itself, the other addresses information with good pricing. Lastly, the paper proposes a game-theoretic model to examine the price competition of IoT-based services. We take a look at how these two sectors will fare against each, both at full capacity

Bathtub-Shaped Failure Rate of Sensors for Distributed Detection and Fusion

We study distributed detection and fusion in sensor networks with bathtub-shaped failure (BSF) rate of the sensors which may or not send data to the Fusion Center (FC). The reliability of semiconductor devices is usually represented by the failure rate curve (called the “bathtub curve”), which can be divided into the three following regions: initial failure period, random failure period, and wear-out failure period. Considering the possibility of the failed sensors which still work but in a bad situation, it is unreasonable to trust the data from these sensors. Based on the above situation, we bring in new characteristics to failed sensors. Each sensor quantizes its local observation into one bit of information which is sent to the FC for overall fusion because of power, communication, and bandwidth constraints. Under this sensor failure model, the Extension Log-likelihood Ratio Test (ELRT) rule is derived. Finally, the ROC curve for this model is presented. The simulation results show that the ELRT rule improves the robust performance of the system, compared with the traditional fusion rule without considering sensor failures

Multiple-Target Tracking in Complex Scenarios

In this dissertation, we develop computationally efficient algorithms for multiple-target tracking: MTT) in complex scenarios. For each of these scenarios, we develop measurement and state-space models, and then exploit the structure in these models to propose efficient tracking algorithms. In addition, we address design issues such as sensor selection and resource allocation. First, we consider MTT when the targets themselves are moving in a time-varying multipath environment. We develop a sparse-measurement model that allows us to exploit the inherent joint delay-Doppler diversity offered by the environment. We then reformulate the problem of MTT as a block-support recovery problem using the sparse measurement model. We exploit the structure of the dictionary matrix to develop a computationally efficient block support recovery algorithm: and thereby a multiple-target tracking algorithm) under the assumption that the channel state describing the time-varying multipath environment is known. Further, we also derive an upper bound on the overall error probability of wrongly identifying the support of the sparse signal. We then relax the assumption that the channel state is known. We develop a new particle filter called the Multiple Rao-Blackwellized Particle Filter: MRBPF) to jointly estimate both the target and the channel states. We also compute the posterior Cramér-Rao bound: PCRB) on the estimates of the target and the channel states and use the PCRB to find a suitable subset of antennas to be used for transmission in each tracking interval, as well as the power transmitted by these antennas. Second, we consider the problem of tracking an unknown number and types of targets using a multi-modal sensor network. In a multi-modal sensor network, different quantities associated with the same state are measured using sensors of different kinds. Hence, an efficient method that can suitably combine the diverse information measured by each sensor is required. We first develop a Hierarchical Particle Filter: HPF) to estimate the unknown state from the multi-modal measurements for a special class of problems which can be modeled hierarchically. We then model our problem of tracking using a hierarchical model and then use the proposed HPF for joint initiation, termination and tracking of multiple targets. The multi-modal data consists of the measurements collected from a radar, an infrared camera and a human scout. We also propose a unified framework for multi-modal sensor management that comprises sensor selection: SS), resource allocation: RA) and data fusion: DF). Our approach is inspired by the trading behavior of economic agents in commercial markets. We model the sensors and the sensor manager as economic agents, and the interaction among them as a double sided market with both consumers and producers. We propose an iterative double auction mechanism for computing the equilibrium of such a market. We relate the equilibrium point to the solutions of SS, RA and DF. Third, we address MTT problem in the presence of data association ambiguity that arises due to clutter. Data association corresponds to the problem of assigning a measurement to each target. We treat the data association and state estimation as separate subproblems. We develop a game-theoretic framework to solve the data association, in which we model each tracker as a player and the set of measurements as strategies. We develop utility functions for each player, and then use a regret-based learning algorithm to find the correlated equilibrium of this game. The game-theoretic approach allows us to associate measurements to all the targets simultaneously. We then use particle filtering on the reduced dimensional state of each target, independently

Distributed Target Tracking and Synchronization in Wireless Sensor Networks

Wireless sensor networks provide useful information for various applications but pose challenges in scalable information processing and network maintenance. This dissertation focuses on statistical methods for distributed information fusion and sensor synchronization for target tracking in wireless sensor networks. We perform target tracking using particle filtering. For scalability, we extend centralized particle filtering to distributed particle filtering via distributed fusion of local estimates provided by individual sensors. We derive a distributed fusion rule from Bayes\u27 theorem and implement it via average consensus. We approximate each local estimate as a Gaussian mixture and develop a sampling-based approach to the nonlinear fusion of Gaussian mixtures. By using the sampling-based approach in the fusion of Gaussian mixtures, we do not require each Gaussian mixture to have a uniform number of mixture components, and thus give each sensor the flexibility to adaptively learn a Gaussian mixture model with the optimal number of mixture components, based on its local information. Given such flexibility, we develop an adaptive method for Gaussian mixture fitting through a combination of hierarchical clustering and the expectation-maximization algorithm. Using numerical examples, we show that the proposed distributed particle filtering algorithm improves the accuracy and communication efficiency of distributed target tracking, and that the proposed adaptive Gaussian mixture learning method improves the accuracy and computational efficiency of distributed target tracking. We also consider the synchronization problem of a wireless sensor network. When sensors in a network are not synchronized, we model their relative clock offsets as unknown parameters in a state-space model that connects sensor observations to target state transition. We formulate the synchronization problem as a joint state and parameter estimation problem and solve it via the expectation-maximization algorithm to find the maximum likelihood solution for the unknown parameters, without knowledge of the target states. We also study the performance of the expectation-maximization algorithm under the Monte Carlo approximations used by particle filtering in target tracking. Numerical examples show that the proposed synchronization method converges to the ground truth, and that sensor synchronization significantly improves the accuracy of target tracking

SENSOR MANAGEMENT FOR LOCALIZATION AND TRACKING IN WIRELESS SENSOR NETWORKS

Wireless sensor networks (WSNs) are very useful in many application areas including battlefield surveillance, environment monitoring and target tracking, industrial processes and health monitoring and control. The classical WSNs are composed of large number of densely deployed sensors, where sensors are battery-powered devices with limited signal processing capabilities. In the crowdsourcing based WSNs, users who carry devices with built-in sensors are recruited as sensors. In both WSNs, the sensors send their observations regarding the target to a central node called the fusion center for final inference. With limited resources, such as limited communication bandwidth among the WSNs and limited sensor battery power, it is important to investigate algorithms which consider the trade-off between system performance and energy cost in the WSNs. The goal of this thesis is to study the sensor management problems in resource limited WSNs while performing target localization or tracking tasks. Most research on sensor management problems in classical WSNs assumes that the number of sensors to be selected is given a priori, which is often not true in practice. Moreover, sensor network design usually involves consideration of multiple conflicting objectives, such as maximization of the lifetime of the network or the inference performance, while minimizing the cost of resources such as energy, communication or deployment costs. Thus, in this thesis, we formulate the sensor management problem in a classical resource limited WSN as a multi-objective optimization problem (MOP), whose goal is to find a set of sensor selection strategies which re- veal the trade-off between the target tracking performance and the number of selected sensors to perform the task. In this part of the thesis, we propose a novel mutual information upper bound (MIUB) based sensor selection scheme, which has low computational complexity, same as the Fisher information (FI) based sensor selection scheme, and gives estimation performance similar to the mutual information (MI) based sensor selection scheme. Without knowing the number of sensors to be selected a priori, the MOP gives a set of sensor selection strategies that reveal different trade-offs between two conflicting objectives: minimization of the number of selected sensors and minimization of the gap between the performance metric (MIUB and FI) when all the sensors transmit measurements and when only the selected sensors transmit their measurements based on the sensor selection strategy. Crowdsourcing has been applied to sensing applications recently where users carrying devices with built-in sensors are allowed or even encouraged to contribute toward the inference tasks. Crowdsourcing based WSNs provide cost effectiveness since a dedicated sensing infrastructure is no longer needed for different inference tasks, also, such architectures allow ubiquitous coverage. Most sensing applications and systems assume voluntary participation of users. However, users consume their resources while participating in a sensing task, and they may also have concerns regarding their privacy. At the same time, the limitation on communication bandwidth requires proper management of the participating users. Thus, there is a need to design optimal mechanisms which perform selection of the sensors in an efficient manner as well as providing appropriate incentives to the users to motivate their participation. In this thesis, optimal mechanisms are designed for sensor management problems in crowdsourcing based WSNs where the fusion center (FC) con- ducts auctions by soliciting bids from the selfish sensors, which reflect how much they value their energy cost. Furthermore, the rationality and truthfulness of the sensors are guaranteed in our model. Moreover, different considerations are included in the mechanism design approaches: 1) the sensors send analog bids to the FC, 2) the sensors are only allowed to send quantized bids to the FC because of communication limitations or some privacy issues, 3) the state of charge (SOC) of the sensors affects the energy consumption of the sensors in the mechanism, and, 4) the FC and the sensors communicate in a two-sided market

Scaling Multidimensional Inference for Big Structured Data

In information technology, big data is a collection of data sets so large and complex that it becomes difficult to process using traditional data processing applications [151]. In a world of increasing sensor modalities, cheaper storage, and more data oriented questions, we are quickly passing the limits of tractable computations using traditional statistical analysis methods. Methods which often show great results on simple data have difficulties processing complicated multidimensional data. Accuracy alone can no longer justify unwarranted memory use and computational complexity. Improving the scaling properties of these methods for multidimensional data is the only way to make these methods relevant. In this work we explore methods for improving the scaling properties of parametric and nonparametric models. Namely, we focus on the structure of the data to lower the complexity of a specific family of problems. The two types of structures considered in this work are distributive optimization with separable constraints (Chapters 2-3), and scaling Gaussian processes for multidimensional lattice input (Chapters 4-5). By improving the scaling of these methods, we can expand their use to a wide range of applications which were previously intractable open the door to new research questions

Augmented Human Machine Intelligence for Distributed Inference

With the advent of the internet of things (IoT) era and the extensive deployment of smart devices and wireless sensor networks (WSNs), interactions of humans and machine data are everywhere. In numerous applications, humans are essential parts in the decision making process, where they may either serve as information sources or act as the final decision makers. For various tasks including detection and classification of targets, detection of outliers, generation of surveillance patterns and interactions between entities, seamless integration of the human and the machine expertise is required where they simultaneously work within the same modeling environment to understand and solve problems. Efficient fusion of information from both human and sensor sources is expected to improve system performance and enhance situational awareness. Such human-machine inference networks seek to build an interactive human-machine symbiosis by merging the best of the human with the best of the machine and to achieve higher performance than either humans or machines by themselves. In this dissertation, we consider that people often have a number of biases and rely on heuristics when exposed to different kinds of uncertainties, e.g., limited information versus unreliable information. We develop novel theoretical frameworks for collaborative decision making in complex environments when the observers may include both humans and physics-based sensors. We address fundamental concerns such as uncertainties, cognitive biases in human decision making and derive human decision rules in binary decision making. We model the decision-making by generic humans working in complex networked environments that feature uncertainties, and develop new approaches and frameworks facilitating collaborative human decision making and cognitive multi-modal fusion. The first part of this dissertation exploits the behavioral economics concept Prospect Theory to study the behavior of human binary decision making under cognitive biases. Several decision making systems involving humans\u27 participation are discussed, and we show the impact of human cognitive biases on the decision making performance. We analyze how heterogeneity could affect the performance of collaborative human decision making in the presence of complex correlation relationships among the behavior of humans and design the human selection strategy at the population level. Next, we employ Prospect Theory to model the rationality of humans and accurately characterize their behaviors in answering binary questions. We design a weighted majority voting rule to solve classification problems via crowdsourcing while considering that the crowd may include some spammers. We also propose a novel sequential task ordering algorithm to improve system performance for classification in crowdsourcing composed of unreliable human workers. In the second part of the dissertation, we study the behavior of cognitive memory limited humans in binary decision making and develop efficient approaches to help memory constrained humans make better decisions. We show that the order in which information is presented to the humans impacts their decision making performance. Next, we consider the selfish behavior of humans and construct a unified incentive mechanism for IoT based inference systems while addressing the selfish concerns of the participants. We derive the optimal amount of energy that a selfish sensor involved in the signal detection task must spend in order to maximize a certain utility function, in the presence of buyers who value the result of signal detection carried out by the sensor. Finally, we design a human-machine collaboration framework that blends both machine observations and human expertise to solve binary hypothesis testing problems semi-autonomously. In networks featuring human-machine teaming/collaboration, it is critical to coordinate and synthesize the operations of the humans and machines (e.g., robots and physical sensors). Machine measurements affect human behaviors, actions, and decisions. Human behavior defines the optimal decision-making algorithm for human-machine networks. In today\u27s era of artificial intelligence, we not only aim to exploit augmented human-machine intelligence to ensure accurate decision making; but also expand intelligent systems so as to assist and improve such intelligence