We consider the problem of routing traffic to optimize the performance of a congested network. We are given a network, a rate of traffic between each pair of nodes, and a latency function for each edge specifying the time needed to traverse the edge given its congestion; the objective is to route traffic such that the sum of all travel times—the total latency—is minimized. In many settings, it may be expensive or impossible to regulate network traffic so as to implement an optimal assignment of routes. In the absence of regulation by some central authority, we assume that each network user routes its traffic on the minimum-latency path available to it, given the network congestion caused by the other users. In general such a “selfishly motivated ” assignment of traffic to paths will not minimize the total latency; hence, this lack of regulation carries the cost of decreased network performance. In this article, we quantify the degradation in network performance due to unregulated traffic. We prove that if the latency of each edge is a linear function of its congestion, then the total latency of the routes chosen by selfish network users is at most 4/3 times the minimum possible total latency (subject to the condition that all traffic must be routed). We also consider the more general setting in which edge latency functions are assumed only to be continuous and nondecreasing in the edge congestion. Here, the total

In noncooperative networks users make control decisions that optimize their own performance measure. Focusing on routing, we devise two methodologies for architecting noncooperative networks, that improve the overall network performance. These methodologies are motivated by problem settings arising in the provisioning and the run time phases of the network. For either phase, Nash equilibria characterize the operating point of the network. The goal of the provisioning phase is to allocate link capacities that lead to systemwide efficient Nash equilibria. In general, the solution of such design problems is counterintuitive, since adding link capacity might lead to a degradation of user performance. We show that, for systems of parallel links, such paradoxes cannot occur and the optimal solution coincides with the solution in the single-user case. We derive some extensions to general network topologies. During the run time phase, a manager controls the routing of part of the network flow. The manager is aware of the noncooperative behavior of the users and makes its routing decisions based on this information while aiming at improving the overall system performance. We obtain necessary and sufficient conditions for enforcing an equilibrium that coincides with the global systemwide optimum, and indicate that these conditions are met in many cases of interest.

AbstractWe study the problem of optimizing the performance of a system shared by selfish, noncooperative users. We consider the concrete setting of scheduling jobs on a set of shared machines with load-dependent latency functions specifying the length of time necessary to complete a job; we measure system performance by the total latency of the system. Assigning jobs according to the selfish interests of individual users (who wish to minimize only the latency that their own jobs experience) typically results in suboptimal system performance. However, in many systems of this type there is a mixture of "selfishly controlled " and "centrally controlled " jobs; as the assignment of centrally controlled jobs will influence the subsequent actions by selfish users, we aspire to contain the degradation in system performance due to selfish behavior by scheduling the centrally controlled jobs in the best possible way. We formulate this goal as an optimization problem via Stackelberg games, games in which one player acts a leader (here, the centralized authority interested in optimizing system performance) and the rest as followers (the selfish users). The problem is then to compute a strategy for the leader (a Stackelberg strategy) that induces the followers to react in a way that (at least approximately) minimizes the total latency in the system. In this paper, we prove that it is NP-hard to compute the optimal Stackelberg strategy and present simple strategies with provable performance guarantees. More precisely, we give a simple algorithm that computes a strategy inducing a job assignment with total latency no more than a constant times that of the optimal assignment of all of the jobs; in the absence of centrally controlled jobs and a Stackelberg strategy, no result of this type is possible. We also prove stronger performance guarantees in the special case where every machine latency function is linear in the machine load.

In noncooperative networks users make control decisions that optimize their individual performance objectives. Nash equilibria characterize the operating points of such networks. Nash equilibria are generically inefficient and exhibit suboptimal network performance. Focusing on routing, a methodology is devised for overcoming this deficiency, through the intervention of the network manager. The manager controls part of the network flow, is aware of the noncooperative behavior of the users and performs its routing aiming at improving the overall system performance. The existence of maximally efficient strategies for the manager, i.e., strategies that drive the system into the global network optimum, is investigated. A maximally efficient strategy of the manager not only optimizes the overall performance of the network, but also induces an operating point that is efficient with respect to the performance of the individual users (Pareto efficiency). Necessary and sufficient conditions for...

In noncooperative networks users make control decisions that optimize their individual performance objectives. Nash equilibria characterize the operating points of such networks. Nash equilibria exhibit, in general, suboptimal network performance. Focusing on routing, a methodology is devised for overcoming this deficiency, through the intervention of the network manager. The manager controls part of the network flow, is aware of the noncooperative behavior of the users and performs its routing aiming at improving the overall system performance. The existence of maximally efficient strategies for the manager, i.e., strategies that drive the system into the global network optimum, is investigated. Necessary and sufficient conditions for the existence of a maximally efficient strategy are derived. The maximally efficient strategy is shown to be unique and it is specified explicitly. 1 Introduction Traditional computer networks were typically designed with systemwide optimization in min...

Network pricing has important implications in the revenue generation, resource management, system optimization and congestion control of computer networks. We depart from the prevalent idea of marginal cost pricing and provide a holistic, bi-level optimiza-tion framework to model the interaction between network entities in a connection oriented network. Users are treated as utility maximizing entities who allocate the available band-width among themselves by playing a distributed, noncooperative rate game. The ensuing Nash equilibrium is analyzed for the single link Erlang network and the multi-link prod-uct form networks. Variants based on the upper bound of the blocking are also studied owing to their role in reducing computational complexity. Theoretical results are then val-idated using numerical simulation for varying network scenarios. An extension of the rate adaptation game based on Recursive Least Squares is proposed for dealing with the imper-fect information scenario. These exhibited favorable convergence, accuracy and scalability properties. Gradient-free schemes are then developed for revenue maximization. These are based on novel stochastic approximation techniques such as Finite Difference Stochastic Approximation (FDSA) and Simultaneous Perturbation Stochastic Approximation (SPSA). It is observed that the network employed price discrimination for optimizing its objective function and partitioning its available capacity among competing users.

Equilibria of a noncooperative game for heterogeneous users of an ALOHA network