Congestion pricing and noncooperative games in communication networks

Congestion pricing and noncooperative games in communication networks

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Article ID: iaor20082559
Country: United States
Volume: 55
Issue: 3
Start Page Number: 430
End Page Number: 438
Publication Date: May 2007
Journal: Operations Research
Authors: , ,
Keywords: game theory
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.

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