Efficiency loss in a resource allocation game: A single link in elastic supply

  title={Efficiency loss in a resource allocation game: A single link in elastic supply},
  author={Ramesh Johari and Shie Mannor and J. Tsitsiklis},
  journal={2004 43rd IEEE Conference on Decision and Control (CDC) (IEEE Cat. No.04CH37601)},
  pages={4679-4683 Vol.5}
We consider a resource allocation problem where individual users wish to send data across a single link to maximize their utility, and a cost is incurred dependent on the total flow sent on the link. It has been shown that as long as users do not anticipate the effect of their actions on prices, a simple proportional pricing mechanism can maximize the sum of users' utilities minus the cost (called social welfare). Continuing previous efforts to quantify the effects of selfish behavior in… CONTINUE READING


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