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Congestion pricing and noncooperative games in communication networks. (English) Zbl 1167.90420
Summary: 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.
MSC:
90B18Communication networks (optimization)
91A10Noncooperative games
91B52Special types of equilibria in economics