Hedonic Coalition Formation Game and Contract-Based Federated Learning in AAV-Assisted Internet of Things

Coupled with the rise of Deep Learning, the wealth of data and enhanced computation capabilities of Internet of Things (IoT) components enable effective artificial intelligence (AI)-based models to be built. Beyond ground data sources, autonomous aerial vehicles (AAVs)-based service providers for data collection and AI model training, i.e., Drones-as-a-Service (DaaS), have become increasingly popular in recent years. However, the stringent regulations governing data privacy potentially impede data sharing across independently owned AAVs. To this end, we propose in this article a federated learning (FL)-based architecture that enables privacy-preserving collaborative machine learning across a federation of independent DaaS providers for the development of IoT applications. Specifically, this work introduces a novel incentive mechanism based on the hedonic coalition formation game to enhance the sustainable efficiency and stability of the FL system. By establishing tailored operational rules and functions, the proposed mechanism enables IoT sensing nodes to autonomously form optimal coalitions with AAVs, thereby ensuring robust collaboration. To deal with incentive mismatches and information asymmetry, we leverage the contract theory and propose a self-disclosure mechanism that guarantees truthful reporting of AAV capabilities while optimizing the global model owner’s profits. The performance-based AAV type is also defined to offer a practical measure for heterogeneous AAVs and serve as the foundation for fair and effective contract design. Simulation results validate the superiority of the proposed approach, demonstrating significant improvements in utility optimization and system stability compared to existing benchmarks.