How to Influence Noncooperative, Selfish Agents

Lisa Fleischer
IBM T.J. Watson Research Center


Wednesday, June 1, 2005
4:30 - 5:45 PM
Terman Engineering Center, Room 453


Abstract:

The societal value of a distribution of finite resources is frequently measured in terms of of aggregate utility. Decisions, however, are frequently controlled by noncooperative agents who try to maximize their own private utility. The term "price of anarchy" refers to the ratio of social utility achieved by selfish agents versus the social optimal.

In network routing games, the price of anarchy can be arbitrarily bad. We review these results, and then describe some solutions to prevent this bad outcome. These include charging users for network use; and managing a small portion of traffic wisely. Some of these results carry over to more general congestion games.




Operations Research Colloquia: http://or.stanford.edu/oras_seminars.html