FAIR: fee arbitrated incentive architecture in wireless ad hoc networks

In ad hoc wireless networks, nodes communicate through a cooperative network in which other nodes function as relays. Since resources are frequently constrained, incentives must be provided to entice nodes to relay. The correct amount of incentive is essential to the efficient and optimal operation of the network. Excessive incentive results in widespread altruism, leading to diminished system lifetime. In contrast, insufficient incentive leads to selfish nodes that dramatically decrease network throughput. Nodes are assumed to be rational, and seek to maximize their own utilities. We use virtual credits as the incentive to stimulate cooperative behavior between nodes. The result of this research is fee arbitrated incentive architecture (FAIR), an application layer protocol that enhances fairness and collaboration in ad hoc wireless networks. FAIR utilizes autonomous feedback mechanisms to configure itself to the changing demands of the nodes, users, and network conditions. PriceSim, a network simulator implementing the FAIR protocol, was created to evaluate FAIR´s performance.