FedFAIM: A Model Performance-based Fair Incentive Mechanism for Federated Learning

Federated Learning (FL) has emerged as a privacy-preserving distributed machine learning paradigm. To motivate data owners to contribute towards FL, research on FL incentive mechanisms is gaining great interest. Existing monetary incentive mechanisms generally share the same FL model with all participants regardless of their contributions. Such an assumption can be unfair towards participants who contributed more and promote undesirable free-riding, especially when the final model is of great utility value to participants. In this paper, we propose a Fairness-Aware Incentive Mechanism for federated learning (FedFAIM) to address such problem. It satisfies two types of fairness notion: 1) aggregation fairness, which determines aggregation results according to data quality; 2) reward fairness, which assigns each participant a unique model with performance reflecting his contribution. Aggregation fairness is achieved through efficient gradient aggregation which examines local gradient quality and aggregates them based on data quality. Reward fairness is achieved through an efficient Shapley value-based contribution assessment method and a novel reward allocation method based on reputation and distribution of local and global gradients. We further prove reward fairness is theoretically guaranteed. Extensive experiments show that FedFAIM provides stronger incentives than similar non-monetary FL incentive mechanisms while achieving a high level of fairness.