Ismail Lotfi

Ismail Lotfi, Dusit Niyato, Sumei Sun et al.

In this paper, we address the problem of designing incentive mechanisms by a virtual service provider (VSP) to hire sensing IoT devices to sell their sensing data to help creating and rendering the digital copy of the physical world in the Metaverse. Due to the limited bandwidth, we propose to use semantic extraction algorithms to reduce the delivered data by the sensing IoT devices. Nevertheless, mechanisms to hire sensing IoT devices to share their data with the VSP and then deliver the constructed digital twin to the Metaverse users are vulnerable to adverse selection problem. The adverse selection problem, which is caused by information asymmetry between the system entities, becomes harder to solve when the private information of the different entities are multi-dimensional. We propose a novel iterative contract design and use a new variant of multi-agent reinforcement learning (MARL) to solve the modelled multi-dimensional contract problem. To demonstrate the effectiveness of our algorithm, we conduct extensive simulations and measure several key performance metrics of the contract for the Metaverse. Our results show that our designed iterative contract is able to incentivize the participants to interact truthfully, which maximizes the profit of the VSP with minimal individual rationality (IR) and incentive compatibility (IC) violation rates. Furthermore, the proposed learning-based iterative contract framework has limited access to the private information of the participants, which is to the best of our knowledge, the first of its kind in addressing the problem of adverse selection in incentive mechanisms.

Ismail Lotfi, Ali Ghrayeb

Efficient and fair spectrum allocation is a central challenge in 6G networks, where massive connectivity and heterogeneous services continuously compete for limited radio resources. We investigate the use of Large Language Models (LLMs) as bidding agents in repeated 6G spectrum auctions with budget constraints in vehicular networks. Each user equipment (UE) acts as a rational player optimizing its long-term utility through repeated interactions. Using the Vickrey-Clarke-Groves (VCG) mechanism as a benchmark for incentive-compatible, dominant-strategy truthfulness, we compare LLM-guided bidding against truthful and heuristic strategies. Unlike heuristics, LLMs leverage historical outcomes and prompt-based reasoning to adapt their bidding behavior dynamically. Results show that when the theoretical assumptions guaranteeing truthfulness hold, LLM bidders recover near-equilibrium outcomes consistent with VCG predictions. However, when these assumptions break -- such as under static budget constraints -- LLMs sustain longer participation and achieve higher utilities, revealing their ability to approximate adaptive equilibria beyond static mechanism design. This work provides the first systematic evaluation of LLM bidders in repeated spectrum auctions, offering new insights into how AI-driven agents can interact strategically and reshape market dynamics in future 6G networks.

Ismail Lotfi, Marwa Qaraqe, Ali Ghrayeb et al.

In this paper, we tackle the issue of moral hazard within the realm of the vehicular Metaverse. A pivotal facilitator of the vehicular Metaverse is the effective orchestration of its market elements, primarily comprised of sensing internet of things (SIoT) devices. These SIoT devices play a critical role by furnishing the virtual service provider (VSP) with real-time sensing data, allowing for the faithful replication of the physical environment within the virtual realm. However, SIoT devices with intentional misbehavior can identify a loophole in the system post-payment and proceeds to deliver falsified content, which cause the whole vehicular Metaverse to collapse. To combat this significant problem, we propose an incentive mechanism centered around a reputation-based strategy. Specifically, the concept involves maintaining reputation scores for participants based on their interactions with the VSP. These scores are derived from feedback received by the VSP from Metaverse users regarding the content delivered by the VSP and are managed using a subjective logic model. Nevertheless, to prevent ``good" SIoT devices with false positive ratings to leave the Metaverse market, we build a vanishing-like system of previous ratings so that the VSP can make informed decisions based on the most recent and accurate data available. Finally, we validate our proposed model through extensive simulations. Our primary results show that our mechanism can efficiently prevent malicious devices from starting their poisoning attacks. At the same time, trustworthy SIoT devices that had a previous miss-classification are not banned from the market.