Agentic Service Markets Across the Computing Continuum: A Polymatroidal Architecture
Organizations: Future Computing Group, University of Oulu, Finland · Distributed Systems Group, TU Wien, Vienna, Austria · Department of Mechatronics, University of Prishtina, Kosova · Machine Learning Laboratory, International Institute of Information Technology (IIITH), Hyderabad, India · Multimodal Sensing Lab, University of Oulu, Finland · Department of Computer and Systems Sciences, Stockholm University, Sweden · ICREA Barcelona, Spain
Abstract
Autonomous AI agents are becoming economic actors. They compose deadline-bound services across the device-edge-cloud continuum and contend for capacity no single operator owns. This article asks when decentralised pricing can coordinate them exactly and truthfully, and what their service dependencies must satisfy. We model the pipelines as service-dependency graphs under governance constraints and identify the decisive property: laminarity of the induced leaf-block family. Where it holds, the feasible allocation space is a polymatroid and efficient incentive-compatible clearing exists per epoch; where a crossing breaks it, exactness and truthfulness can fail, while clearing prices survive on every totally unimodular family. The formal results instantiate polymatroid, gross-substitutes and Vickrey-Clarke-Groves theory; the contribution is the bridge from dependency structure to that machinery and an integrator architecture that exposes a laminar interface. The node-level evaluation (32,020 runs), at testbed-calibrated congestion, locates the boundary. One crossing costs exactness in 14.7% of high-load rounds and none on laminar instances, and truthfulness fails where exactness does, across contention. An integrator's inner exposure restores exactness at a cost in admitted volume, and before translation overhead it cuts median latency by 16 to 17 percent. Against truth-free posted prices the tuned market leads at medium load and trails a demand-responsive one in four of six high-load cells. Recorded and composed agent workloads drive the allocation. For platform designers, laminar pipelines admit exact decentralised pricing, truthful under the VCG mechanism, and a crossing needs an integrator's inner exposure.
Figures & tables
| Result | Known | What this article adds | What the article does not claim |
|---|---|---|---|
| Proposition 1 : polymatroidal feasibility on laminar leaf-block families, with trees and series–parallel DAGs as sufficient conditions | Edmonds [ 15 ] ; Fujishige [ 16 ] ; Amin et al. [ 14 ] on SP flow networks | The bridge from a multi-output, capacity-typed service-dependency DAG to a polymatroid, under leaf-block semantics in which series–parallel terminals are virtual and are not leaves | Nothing for general DAGs or outside the terminals-and-leaves convention. The region is exact under the article’s token counting on every DAG. Laminarity decides only polymatroidality. Laminarity follows from the semantics and the capacities rather than from the drawn edges. No cross-epoch claim |
| Lemma 1 : gross-substitutes valuations on the slice interface | Kelso–Crawford [ 17 ] ; Gul–Stacchetti [ 18 ] ; OXS [ 19 ] ; discrete convex analysis [ 10 ] | The conditions under which slice encapsulation makes an agent’s aggregate valuation the convolution of its unit-demand task valuations, hence an OXS assignment valuation, which is gross substitutes | Agent-level rather than a per-task bidder set. Fails under shared agent budgets, cross-task latency coupling or shared token caps, and is not closed under summation across agents |
| Proposition 2 : Walrasian equilibrium, polynomial computation, agent-level DSIC | Kelso–Crawford [ 17 ] ; Murota [ 10 ] ; VCG [ 20 ] | Agent-level DSIC on a service-DAG-induced integer polymatroid, with the agent’s aggregate OXS valuation as the bidder and a Clarke pivot that removes the agent in full | Attaches to the exact welfare maximiser rather than to the auction’s price path. Weak budget balance under down-closed supply. No group strategy-proofness, no cross-epoch guarantee, no operator-side credibility. Clinching only under one task per agent. The truth-assuming single-domain planners the evaluation compares against are counterfactuals that bound the comparison |
| Proposition 3 : exact scalar interface where a cluster’s leaf blocks coincide | Polymatroid contraction [ 16 ] | A scalar slice interface exported from a sub-DAG, the capacity lemma identifying that scalar as the sub-DAG’s internal bottleneck, and the quotient-graph condition for polymatroidality | Requires one homogeneous slice type and a single-node interface per integrator. Otherwise the summary can over-commit and the integrator exposes a smaller polymatroid inside the deliverable region (the inner-exposure result in the appendices). Nothing for multi-output integrators, internal latency–throughput trade-offs, or shared leaves. The evaluated contraction is this interface on the parallel fan and an inner exposure on the tree and the crossing instance |
| Catalogue interface for multi-resource recipes (appendices) | Direct sums of polymatroid ranks [ 16 ] ; Edmonds’ greedy [ 15 ] | The exact boundary: at positive internal capacities the catalogue rank gives the resource-feasible region exactly when recipes within a resource-sharing group are identical, and over-commits by a computable factor when they are merely proportional | No exactness for proportional but unequal recipes. No polymatroidal catalogue region for non-proportional sharing, where the integrator can expose only a conservative inner polymatroid. The multi-dimensional case is only bounded |
| Three-layer hybrid architecture ( Section IV-F ) | Network slicing [ 21 ] ; continuum orchestration [ 22 ] ; service function chaining [ 23 ] ; service composition [ 24 ] | Integrator encapsulation as the structural route through regimes outside the laminar leaf-block hypothesis, and the division of labour that keeps the agent-facing interface polymatroidal | No deployment. Integrators are non-strategic infrastructure here. The local-marketplace and inter-market layers are characterised analytically and are not exercised; the evaluation runs the integrator’s slice interface alone |
| Inst. | Load | Lat. (ms) | Drop | Tok. | Welf. | Alloc. | Exact. | |
|---|---|---|---|---|---|---|---|---|
| T 90 | low | 70.7 | 0.000 | 45.09 | 34.27 | 1.000 | 0.000 | 0.000 |
| med | 82.3 | 0.013 | 88.72 | 60.43 | 0.999 | 0.000 | 0.170 | |
| high | 95.1 | 0.290 | 94.99 | 61.65 | 0.954 | 0.000 | 0.126 | |
| X 90 | low | 70.7 | 0.000 | 45.09 | 34.25 | 1.000 | 0.000 | 0.000 |
| med | 84.0 | 0.020 | 88.10 | 59.18 | 0.997 | 0.013 | 0.114 | |
| high | 96.3 | 0.308 | 92.44 | 58.89 | 0.925 | 0.147 | 0.167 |
| Lauri Lovén is an Assistant Professor (tenure track) and head of the Future Computing Group at the University of Oulu, Finland. |
| Alaa Saleh is a doctoral candidate at the Future Computing Group, in the Center for Applied Computing, University of Oulu, Finland. |
| Reza Farahani is a Postdoctoral Researcher at the Distributed Systems Group, TU Wien, Vienna, Austria. |
| Ilir Murturi is an Assistant Professor at the University of Prishtina and an external Senior Researcher at the Distributed Systems Group, TU Wien. |
| Sujit Gujar is an Associate Professor and the CA Technologies Faculty Chair at the International Institute of Information Technology, Hyderabad (IIITH), India. |
| Miguel Bordallo López is an Associate Professor with the University of Oulu, where he leads distributed intelligence research at the 6G Flagship program. |
| Praveen Kumar Donta is associate professor (docent) at the Department of Computer and Systems Sciences, Stockholm University, Sweden. |
| Schahram Dustdar is Full Professor of Computer Science heading the Distributed Systems research division at TU Wien, Austria, and an ICREA Research Professor in Barcelona, Spain. |
Appendix figures & tables31 assets
Supplementary material from the paper’s appendix.
Appendix
| Symbol | Meaning |
|---|---|
| Set of agents (consumers, providers, integrators, AI agents) | |
| Discrete time index, | |
| Type of agent at time | |
| Type space for agent | |
| Physical location or region of agent | |
| Budget or credit of agent |
| Category | Strengths | Limitations | How This Article Addresses the Gap |
|---|---|---|---|
| Edge/Fog/ Cloud Service Mgmt [ 45 , 46 , 47 , 48 , 50 , 51 ] | Low-latency orchestration; mobility- and multi-resource-aware management. | Assume centralized control; Limited modeling of multi-stage service dependencies; absence of explicit agent-driven decisions; and restricted adaptability under dynamic conditions. | Introduce an agentic layer; unify resource management with autonomous task generation and price-mediated allocation; incorporate service-DAG constraints. |
| Service Function Chaining [ 23 , 53 , 54 ] | Optimize dependency-aware service caching; capture placement constraints. | Do not consider strategic agents; lack integrated economic or governance constraints; ignore market or negotiation dynamics. | Model service-dependency DAGs formally; analyse laminar leaf-block families, for which trees and series–parallel DAGs are sufficient conditions, as the regime enabling stable coordination; embed into an economic/management framework. |
| Agentic/ Autonomous Systems [ 55 , 3 , 22 ] | Identify autonomous AI agents as active system participants; highlight emergent coordination challenges. | No resource-DAG model; no governance-aware allocation; no management-plane integration or tractable orchestration framework. | Provide a full agent–service–resource–governance model; link agent behavior to system feasibility and market outcomes. |
| Governance, Trust, Norms [ 7 , 40 , 41 ] | Formalize policies, trust, locality, compliance; mature models of norm enforcement. | Not integrated with latency and quality-of-service constraints, dependency-aware placement, or market-based coordination. | Embed governance directly into feasibility ( ); model reputation-dependent access (a trust cap that does not bind at the reported operating point); evaluate governance–performance trade-offs. |
| Market-Based Resource Allocation [ 8 , 56 , 25 , 26 ] | Provide incentive-compatible mechanisms; efficient pricing and allocation for substitutable resources. | Assume independent or substitutable items; break down under interdependent resource bundles or service graphs; no governance. | Identify structural conditions where market stability is preserved (polymatroid regimes); propose hybrid slice-based architecture insulating the market from deep complementarities. |
| Parameter | Symbol | Value | Justification |
| Instances | |||
| Node capacities | 200 / 100 / 100 / 100 / 150 / 100 / 150 / 100 | Units at , , , , to ; sums to the tier totals | |
| Token weight | 2 | Capacity units one throughput token consumes at each node on its path | |
| Nodes and arcs | — | 8 nodes; 7 / 8 / 15 arcs | One device node, three edge nodes and four leaves, shared by T, X and S; X is T plus the arc , which makes the leaf-block family cross |
| Base processing delays | ms | By physical tier; zero-queue critical path ms on every instance | |
| Flow bound ratio | — | 1.0 / 1.0 / 0.5 | T / X / S; the max-flow bound of a routing count over the leaf-block capacity of Definition 1. On S the routing bound is twice the fork-join capacity, because every token there loads all three parallel edge nodes |
| Exp. | Varied Aspect | Settings | Fixed |
|---|---|---|---|
| 1 | Leaf-block family load | T (rooted tree), X (T plus one arc, whose leaf-block family crosses), S (parallel fan, whose internal leaf blocks coincide); low, medium, high ( ) | (T), (X), (S); governance: none; architecture: uncontracted; uniform leaf mix; runs |
| 2 | Agent population instance | over a -point grid from to ; T, X and S; medium and high load | Governance: none; architecture: uncontracted; runs |
| 3 | Governance policy | None, two coordinate caps (a provider trust threshold and a jurisdiction predicate), a role-class cap enforced at admission, and a cross-node coupling, a joint token budget over two leaves in different domains, the measured member of the class a data-residency rule belongs to, with that coupling sliced by domain | T, X and S; load: medium and high; both leaf mixes; / / ; runs |
| 4 | Architecture factorial | Uncontracted, uncontracted EMA, contracted without EMA, contracted EMA; the interface is fixed by the arm, none uncontracted and the cluster’s bottleneck scalar contracted, and the advertised routed composition is the faithfulness probe’s | T, X and S; load: medium and high; runs |
| 5 | Architecture governance | Contracted vs. uncontracted; caps vs. none; T, X and S | / / ; load: medium and high; runs |
| 6 | Allocation mechanism, grouped by comparator tier | Tier A reference optima as reported columns; Tier B random, earliest-deadline-first [ 38 ] , value-greedy, the Kubernetes-style rank [ 37 ] and the value-ranked posted price; Tier C the market, the congestion-consistent market, the arrival-order and the deadline-priority posted prices over a markup grid re-levelled around the interior optimum, a demand-responsive posted price tuned over its step and target, and the mixed arm; uncontracted and contracted architecture | T, X and S; load: medium and high; / / ; no governance; both congestion levels; runs on the level grid, tuning and evaluation runs |
| Block | Grid | Runs |
| Ablation experiments | ||
| Structure | 3 instances 3 loads 10 seeds | |
| Governance | 6 levels 3 instances 2 loads 2 mixes 10 | |
| Cap-target probe | 4 targets 2 loads 10, on X | |
| Architecture | 4 arms 3 instances 2 loads 10 | |
| Architecture governance | 2 2 3 instances 2 loads 10 | |
| Component | Metric | Before | After |
|---|---|---|---|
| S: T X (high load) | |||
| Exactness shortfall | |||
| Incentive certificate | Passes | Fails | |
| Drop rate (control) | |||
| H: Contracted Uncontracted (T, high) | |||
| Median latency | ms | ms | |
| Parameter | Value | Median | Min | Max | |
|---|---|---|---|---|---|
| Capacity scale | 3 | ||||
| 10 | |||||
| 5 | |||||
| Slice-price step | 10 | ||||
| 10 | |||||
| 10 |
| Instance | Load | Med. Lat. (ms) | Drop Rate | Tokens | Welfare | Alloc. | Shortfall | |
|---|---|---|---|---|---|---|---|---|
| T | Low | 70.68 | 0.0000 | 45.09 | 34.27 | 1.0000 | 0.0000 | 0.0000 |
| T | Medium | 82.27 | 0.0132 | 88.72 | 60.43 | 0.9993 | 0.0000 | 0.1697 |
| T | High | 95.11 | 0.2900 | 94.99 | 61.65 | 0.9541 | 0.0000 | 0.1260 |
| X | Low | 70.75 | 0.0000 | 45.09 | 34.25 | 1.0000 | 0.0000 | 0.0000 |
| X | Medium | 83.96 | 0.0198 | 88.10 | 59.18 | 0.9969 | 0.0130 | 0.1144 |
| X | High | 96.32 | 0.3078 | 92.44 | 58.89 | 0.9253 | 0.1470 | 0.1666 |
| Tier and arm | Feasible where | W/opt. | Alloc. | Frontier | Cert. |
| Tier A, reference optima, unobtainable in deployment, yardsticks only | |||||
| Exact allocative optimum | Zero queue and true values, neither available to any arm | — | — | — | |
| Ex-post prefix optimum | The best value-prefix admission through the realised congestion model, a lower bound | — | — | — | |
| Tier B, truth-assuming single-domain planners | |||||
| Value-greedy | Inside one operator’s domain, with its own agents, and only where it can read true values | 0.954 / 0.931 / 0.979 | 0.999 / 0.999 / 1.000 | 1.00 / 1.00 / — | Yes / No / Yes |
| Kubernetes rank | Inside one operator’s domain, on declared priorities and resource requests | 0.872 / 0.854 / 0.905 | 0.924 / 0.924 / 0.925 | 0.91 / 0.91 / — | Yes / No / Yes |
| Instance | Cert. | ||||||
|---|---|---|---|---|---|---|---|
| T | Passes | 0.0858 | 0.0440 | 0.0030 | 0 | 0.0020 | 0.0102 |
| S | Passes | 0.0867 | 0.0421 | 0.0029 | 0 | 0.0019 | 0.0099 |
| X | Fails | 0.0473 | 0.0226 | 0.0017 | 0 | 0.0014 | 0.0073 |
| VCG | Market | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Cap. | X mean | X max | X inexact | T max | S max | T mean | T max | X mean | X max | |
| 8 | 0.10 | |||||||||
| 8 | 0.25 | |||||||||
| 8 | 0.50 | |||||||||
| 8 | 1.00 | |||||||||
| 15 | 0.10 | |||||||||
| Rec. | Load | Lat. (ms) | Drop | Welf. | Alloc. | Short. | Cert. |
|---|---|---|---|---|---|---|---|
| Lam. | medium | 3890.8 | 0.5526 | 80.53 | 0.9940 | 0.0000 | Passes |
| Lam. | high | 3896.7 | 0.7301 | 75.88 | 0.9001 | 0.0000 | Passes |
| Cross. | medium | 3929.9 | 0.7324 | 60.18 | 0.7433 | 0.2290 | Fails |
| Cross. | high | 4183.6 | 0.8670 | 47.70 | 0.5582 | 0.0260 | Fails |
| Cap | Arm | Price CV | Greedy exact | Adm. exact | Welf. ratio | Served/adm. | Clearing |
|---|---|---|---|---|---|---|---|
| 6 | Homogeneous | 0.722 | 1.0000 | 0.229 | 0.211 | 0.417 | 0.136 |
| 6 | Homog., encaps. | 0.247 | 1.0000 | 0.318 | 0.272 | 0.421 | 0.184 |
| 6 | Heterogeneous | 0.802 | 0.9741 | 0.285 | 0.245 | 0.493 | 0.164 |
| 6 | Hetero., encaps. | 0.231 | 0.9741 | 0.404 | 0.245 | 0.462 | 0.224 |
| 9 | Homogeneous | 0.670 | 1.0000 | 0.626 | 0.604 | 0.556 | 0.518 |
| 9 | Homog., encaps. | 0.192 | 1.0000 | 0.752 | 0.686 | 0.498 | 0.577 |
| Instance | Interface | Over-comm. | Serv/adm | Tokens | Welfare | Lat. (ms) |
|---|---|---|---|---|---|---|
| T | None | 0.0000 | 1.0000 | 94.99 | 61.65 | 95.1 |
| T | Inner | 0.0000 | 1.0000 | 74.61 | 56.78 | 79.6 |
| T | Maxflow | 1.4890 | 1.0000 | 99.04 | 61.70 | 99.9 |
| X | None | 0.0000 | 1.0000 | 92.44 | 58.89 | 96.3 |
| X | Inner | 0.0000 | 1.0000 | 74.61 | 56.55 | 79.9 |
| X | Maxflow | 2.5685 | 1.0000 | 99.04 | 59.03 | 105.2 |
| Demand profile | (ms) | Lat. (ms) | p95 (ms) | Drop | Welfare |
|---|---|---|---|---|---|
| 0 | 301.9 | 349.4 | 0.2914 | 29.12 | |
| 25 | 320.2 | 370.9 | 0.2985 | 26.19 | |
| 50 | 341.1 | 394.9 | 0.3073 | 23.36 | |
| 0 | 330.4 | 380.9 | 0.4269 | 14.83 | |
| 25 | 346.7 | 399.5 | 0.4337 | 13.34 | |
| 50 | 365.5 | 421.1 | 0.4438 | 11.99 |
| Level | Instance | Arm | (ms) | Latency lead (ms) | Welfare lead | Token lead | Zero at |
|---|---|---|---|---|---|---|---|
| reported | T | contracted | 0 | [ , ] | [ , ] | [ , ] | |
| reported | T | contracted | 25 | [ , ] | [ , ] | [ , ] | |
| reported | T | contracted | 50 | [ , ] | [ , ] | [ , ] | |
| reported | T | contracted EMA | 0 | [ , ] | [ , ] | [ , ] | |
| reported | T | contracted EMA | 25 | [ , ] | [ , ] | [ , ] | |
| reported | T | contracted EMA | 50 | [ , ] | [ , ] | [ , ] |
| Variant | Cell | Own | Used | Posted market | Share |
|---|---|---|---|---|---|
| Other load | T, unc., high | [ , ] | |||
| Other load | X, unc., high | [ , ] | |||
| Other load | S, con., high | level not on the grid | |||
| Other load | S, unc., high | level not on the grid | |||
| Other load | T, unc., medium | [ , ] | |||
| Other load | X, unc., medium | [ , ] | |||
| Setting | Factor | Clamp | T | X | S | ||||||
| unc. | con. | unc. | con. | unc. | con. | ||||||
| Baseline | Congestion | ||||||||||
| Clamp | Congestion | ||||||||||
| Clamp | Congestion | ||||||||||
| Calibrated | Congestion | ||||||||||
| Value decay | |||||||||||
| Result | Experiment | Observables | Enters |
|---|---|---|---|
| Prop. 1 (Polymatroid) | Structure ( S) | Exactness, certificate | varied |
| Lemma 1 (GS valuations) | every arm | — | instantiated |
| Prop. 4 (ii) | Heterogeneity, one recipe | Greedy-exact ratio | instantiated |
| Prop. 4 (iii) | Proportional-recipe arm | Over-commitment factor | simulated |
| Prop. 5 (inner) | Architecture on T, X | Over-commitment, volume | instantiated |
| Prop. 2 (DSIC, shading) | Incentives | Per-agent regret | varied |
| Ablation | Source | Isolates |
|---|---|---|
| Full system (S+H+G+M) | Arch. Gov. (contracted, capped) | Everything on |
| M (remove market) | Mechanism (Tier B vs. market) | Price coordination |
| G (remove governance) | Arch. Gov. (no-cap conditions) | Coordinate-wise leaf caps |
| H (remove integrator) | Architecture (uncontracted arm) | Contraction and smoothing together |
| H S (remove smoothing) | Architecture (contracted without EMA) | Smoothing alone |
| H E (remove contraction) | Architecture (uncontracted EMA) | The contraction alone |
| Instance | Load | Measured (seeds) | All seeds | Onset | |
|---|---|---|---|---|---|
| T | medium | 100 | 60 (0.2) | 75 | 0.60 |
| T | high | 100 | 40 (0.2) | 50 | 0.60 |
| X | medium | 100 | 60 (0.2) | 70 | 0.60 |
| X | high | 100 | 40 (0.3) | 50 | 0.60 |
| S | medium | 50 | 30 (0.1) | 40 | 0.60 |
| S | high | 50 | 30 (1.0) | 30 | 0.90 |
| Family | Inst. | Rounds | Cross. | Bip. | Int. | TU | Pos. gap | Rel. gap (mean / max) | Exactness (mean / worst) | Adm. |
| Generated strata | ||||||||||
| Laminar | 17 | 3,400 | 0 | Yes | Yes | Yes | 0.000 | / | 1.0000 / 1.0000 | 81.0 |
| One crossing | 19 | 3,800 | 1 | Yes | Yes | Yes | 0.000 | / | 0.9779 / 0.8805 | 86.1 |
| Bi-laminar | 20 | 4,000 | 2 to 6 | Yes | Mixed | Yes | 0.000 | / | 0.9859 / 0.8855 | 84.3 |
| Odd cycle, interval | 20 | 4,000 | 3 to 6 | No | Yes | Yes | 0.000 | / | 0.9854 / 0.8944 | 84.3 |
| Odd cycle, non-interval | 18 | 3,600 | 3 to 11 | No | No | No | 0.082 | / | 0.9833 / 0.9085 | 82.9 |
| Statistic | Load | Simulation [CI] | Testbed [CI] | Overlap | Sign | |
|---|---|---|---|---|---|---|
| Latency elasticity | high/low | [ , ] | [ , ] | No | Same | / |
| Tail ratio | low | [ , ] | [ , ] | No | Same | / |
| Tail ratio | high | [ , ] | [ , ] | No | Same | / |
| Drop rate | low | [none] | [ , ] | n/a | Differ | / |
| Drop rate | high | [ , ] | [ , ] | No | Same | / |
| Drop-rate step | high low | [ , ] | [ , ] | Yes | Same | / |
| Tier | Cap | W. p50 | W. p95 | S. p50 | S. p95 | W. frac. | |
|---|---|---|---|---|---|---|---|
| Device | |||||||
| Edge | |||||||
| Cloud |
| Phase | Rnds | Tasks | Testbed | Sim. | Gap |
|---|---|---|---|---|---|
| Pre-kill ( – ) | |||||
| Post-kill ( – ) |