mlsanityData to 14 Oct 2026

Incentivize Contribution and Learn Parameters Too: Federated Learning with Strategic Data Owners

arXiv 2505.12010 ↗First posted 17 May 2025cs.GT cs.LG cs.MAcited by 1

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Abstract (arXiv)

In federated learning (FL), a center trains a shared model from updates that clients compute on their private data. Collecting and training on data is costly, so a strategic client may contribute little data and free-ride on the model trained by the others. We study mechanisms that incentivize data contribution and learn the model at the same time. Our first mechanism, UPBReD, updates the clients ' contributions and the model jointly, and converges at a geometric rate to a Nash equilibrium of the contribution game together with the welfare-maximizing model for those contributions. This equilibrium can involve under-contribution, so our second mechanism, 2P-UPBReD, adds budget-balanced transfers that make full contribution a dominant strategy, after which training converges to the optimal model; we also give conditions under which every client prefers to participate. Both mechanisms trust what clients report about the data they use and the gradients they compute. We show that no payment rule can reward unverifiable contributions unless something the center observes depends on the data actually used. Building on this, T-2P-UPBReD checks each client's reported contribution against the other clients ' realized valuations of the trained model, and prices gradient reports with a budget-balanced charge. It elicits truthful contribution reports, makes gradient reports approximately truthful, still reaches full contribution and the optimal model, and never runs a deficit. Experiments on CIFAR-10, FEMNIST, and Twitter show that 2P-UPBReD matches the welfare of FedAvg trained on all data, while strategic clients without incentives lower the welfare of the learned model.

Key facts. Cited by 1 paper in the map (data through 14 Oct 2026). Builds on 23 of its 51 references that are in the map. First posted on arXiv 17 May 2025.

Builds on

23 of 51 references.

References · 23

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  2. 2019Advances and Open Problems in Federated Learningcited by 3,046
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11 more
  1. 2020Model-sharing Games: Analyzing Federated Learning Under Voluntary Participationcited by 60
  2. 2020FedCoin: A Peer-to-Peer Payment System for Federated Learningcited by 39
  3. 2021One for One, or All for All: Equilibria and Optimality of Collaboration in Federated Learningcited by 39
  4. 2022Mechanisms that Incentivize Data Sharing in Federated Learningcited by 39
  5. 2022Fairness in Federated Learning via Core-Stabilitycited by 23
  6. 2024Redefining Contributions: Shapley-Driven Federated Learningcited by 17
  7. 2019Communication-Efficient and Byzantine-Robust Distributed Learning with Error Feedbackcited by 15
  8. 2022FedToken: Tokenized Incentives for Data Contribution in Federated Learningcited by 9
  9. 2023BARA: Efficient Incentive Mechanism with Online Reward Budget Allocation in Cross-Silo Federated Learningcited by 5
  10. 2024FACT or Fiction: Can Truthful Mechanisms Eliminate Federated Free Riding?cited by 3
  11. 2024Incentivizing Truthful Collaboration in Heterogeneous Federated Learningcited by 3

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