Resource Allocation as a Market: A Case Study on Multi-Server Multi-Model Federated Learning

6G networks envision a seamless integration of data and AI into their core operations, marking a new era where distributed client devices actively engage in intelligent processes, supported by a diverse ecosystem of AI service providers. This shift necessitates approaching traditional resource allocation problems from a market perspective, transparently reflecting the gains and losses of clients and providers within the ecosystem. In this paper, we use a multi-server, multi-model Federated Learning (FL) network as a case study to propose a market-based resource allocation framework. The framework models the joint problem of client resource allocation and pricing as a Fisher market, where servers compete to attract clients with private data and local computing resources for distributed model training. The joint problem is formulated as a convex program, aiming to maximize the total server utility related to their model’s accuracy, while incorporating clients’ total computing resource constraints and servers’ budget constraints. An analytical solution to the convex program is derived concluding the so-called Market Equilibrium (ME) point, where market clearance is achieved. The effectiveness of the proposed market-based resource allocation framework is validated through comparisons with established resource allocation and sharing schemes from the literature.