Network investment games with wardrop followers

Daniel Schmand, Marc Schröder, Alexander Skopalik

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    Abstract

    We study a two-sided network investment game consisting of two sets of players, called providers and users. The game is set in two stages. In the first stage, providers aim to maximize their profit by investing in bandwidth of cloud computing services. The investments of the providers yield a set of usable services for the users. In the second stage, each user wants to process a task and therefore selects a bundle of services so as to minimize the total processing time. We assume the total processing time to be separable over the chosen services and the processing time of each service to depend on the utilization of the service and the installed bandwidth. We provide insights on how competition between providers affects the total costs of the users and show that every game on a series-parallel graph can be reduced to an equivalent single edge game when analyzing the set of subgame perfect Nash equilibria.

    Original languageEnglish
    Title of host publication46th International Colloquium on Automata, Languages, and Programming, ICALP 2019
    EditorsIoannis Chatzigiannakis, Christel Baier, Stefano Leonardi, Paola Flocchini
    PublisherDagstuhl
    ISBN (Electronic)9783959771092
    DOIs
    Publication statusPublished - 1 Jul 2019
    Event46th International Colloquium on Automata, Languages, and Programming, ICALP 2019 - Patras, Greece
    Duration: 9 Jul 201912 Jul 2019
    Conference number: 46
    https://icalp2019.upatras.gr/

    Publication series

    NameLeibniz International Proceedings in Informatics, LIPIcs
    Volume132
    ISSN (Print)1868-8969

    Conference

    Conference46th International Colloquium on Automata, Languages, and Programming, ICALP 2019
    Abbreviated titleICALP 2019
    CountryGreece
    CityPatras
    Period9/07/1912/07/19
    Internet address

    Keywords

    • Network Investment Game
    • Subgame Perfect Nash Equilibrium
    • Wardrop Equilibrium

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  • Cite this

    Schmand, D., Schröder, M., & Skopalik, A. (2019). Network investment games with wardrop followers. In I. Chatzigiannakis, C. Baier, S. Leonardi, & P. Flocchini (Eds.), 46th International Colloquium on Automata, Languages, and Programming, ICALP 2019 [151] (Leibniz International Proceedings in Informatics, LIPIcs; Vol. 132). Dagstuhl. https://doi.org/10.4230/LIPIcs.ICALP.2019.151