Incentive-Aware Federated Averaging with Performance Guarantees under Strategic Participation
- URL: http://arxiv.org/abs/2603.20873v1
- Date: Sat, 21 Mar 2026 16:33:36 GMT
- Title: Incentive-Aware Federated Averaging with Performance Guarantees under Strategic Participation
- Abstract summary: Federated learning (FL) is a collaborative learning framework that enables model training across multiple agents with private local datasets.<n>Motivated by the need for FL-aware incentive that successfully retain participating agents, we propose a method in which clients transmit both local model parameters and their updated training training.<n>Experiments demonstrate that agents achieve competitive global model performance while converging to stable data participation strategies.
- Score: 2.931240348160871
- License: http://arxiv.org/licenses/nonexclusive-distrib/1.0/
- Abstract: Federated learning (FL) is a communication-efficient collaborative learning framework that enables model training across multiple agents with private local datasets. While the benefits of FL in improving global model performance are well established, individual agents may behave strategically, balancing the learning payoff against the cost of contributing their local data. Motivated by the need for FL frameworks that successfully retain participating agents, we propose an incentive-aware federated averaging method in which, at each communication round, clients transmit both their local model parameters and their updated training dataset sizes to the server. The dataset sizes are dynamically adjusted via a Nash equilibrium (NE)-seeking update rule that captures strategic data participation. We analyze the proposed method under convex and nonconvex global objective settings and establish performance guarantees for the resulting incentive-aware FL algorithm. Numerical experiments on the MNIST and CIFAR-10 datasets demonstrate that agents achieve competitive global model performance while converging to stable data participation strategies.
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