3,579 research outputs found
Efficiency and Nash Equilibria in a Scrip System for P2P Networks
A model of providing service in a P2P network is analyzed. It is shown that
by adding a scrip system, a mechanism that admits a reasonable Nash equilibrium
that reduces free riding can be obtained. The effect of varying the total
amount of money (scrip) in the system on efficiency (i.e., social welfare) is
analyzed, and it is shown that by maintaining the appropriate ratio between the
total amount of money and the number of agents, efficiency is maximized. The
work has implications for many online systems, not only P2P networks but also a
wide variety of online forums for which scrip systems are popular, but formal
analyses have been lacking
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