Congestion Pricing and Noncooperative Games in Communication Networks
Ayalvadi Ganesh, Koenraad Laevens, Richard Steinberg
Operations Research · 2007 · Volume 55 · Issue 3
Abstract
We consider congestion pricing as a mechanism for sharing bandwidth in communication networks, and model the interaction among the users as a game. We propose a decentralized algorithm for the users that is based on the history of the price process, where user response to congestion prices is analogous to “fictitious play” in game theory, and show that this results in convergence to the unique Wardrop equilibrium. We further show that the Wardrop equilibrium coincides with the welfare-maximizing capacity allocation.
Keywords
communications, computer networks, games, noncooperative
Enable JavaScript for citation tools and additional paper interactions.