Title
Stackelberg thresholds in network routing games or the value of altruism
Abstract
Noncooperative network routing games are a natural model of users trying to selshly route o w through a network in order to minimize their own delays. It is well known that the solution resulting from this selsh routing (called the Nash equilibrium) can have social cost strictly higher than the cost of the optimum solution. One way to improve the quality of the resulting solution is to centrally control a fraction of the o w. A natural problem for the network administrator then is to route the centrally controlled o w in such a way that the overall cost of the solution is minimized after the remaining fraction has routed itself selshly . This problem falls in the class of well-studied Stackelberg routing games. We consider the scenario where the network administrator wants the nal solution to be (strictly) better than the Nash equilibrium. In other words, she wants to control enough o w such that the cost of the resulting solu- tion is strictly less than the cost of the Nash equilibrium. We call the minimum fraction of users that must be cen- trally routed to improve the quality of the resulting solution the Stackelberg threshold. We give a closed form expression for the Stackelberg threshold for parallel links networks with linear latency functions. The expression is in terms of Nash equilibrium o ws and optimum o ws. It turns out that the Stackelberg threshold is the minimum of Nash o ws on links which have more optimum o w than Nash o w. Using our approach to characterize the Stackelberg thresh- olds, we are able to give a simpler proof of an earlier result which nds the minimum fraction required to be centrally controlled to induce an optimum solution.
Year
DOI
Venue
2009
10.1016/j.geb.2009.06.006
ACM Conference on Electronic Commerce
Keywords
Field
DocType
centrally controlled flow,stackelberg equilibrium,nash equilibrium,game theory,price of anarchy,c72,stackelberg threshold,altruistic flow,network routing
Correlated equilibrium,Welfare economics,Economics,Mathematical economics,Epsilon-equilibrium,Best response,Symmetric equilibrium,Price of anarchy,Solution concept,Stackelberg competition,Nash equilibrium
Journal
Volume
Issue
ISSN
67
1
Games and Economic Behavior
Citations 
PageRank 
References 
25
1.11
22
Authors
2
Name
Order
Citations
PageRank
Yogeshwer Sharma11619.67
David P. Williamson23564413.34