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  Achieving network optima using Stackelberg routing strategies (1997) [48 citations — 13 self]

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by Yannis A. Korilis, Yannis A. Korilis, Aurel A. Lazar, Aurel A. Lazar, Ariel Orda, Ariel Orda
IEEE/ACM Transactions on Networking
http://www.bell-labs.com/user/yannisk/papers/ton97-report.pdf
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Abstract:

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 ine cient and exhibit suboptimal network performance. Focusing on routing, a methodology is devised for overcoming this de ciency, through the intervention of the network manager. The manager controls part of the network ow, is aware of the noncooperative behavior of the users and performs its routing aiming at improving the overall system performance. The existence of maximally e cient strategies for the manager, i.e., strategies that drive the system into the global network optimum, is investigated. A maximally e cient strategy of the manager not only optimizes the overall performance of the network, but also induces an operating point that is e cient with respect to the performance of the individual users (Pareto efciency). Necessary and su cient conditions for the existence of a maximally e cient strategy are derived, and it is shown that they are met in many cases of practical interest. The maximally e cient strategy is shown to be unique and it is speci ed explicitly.

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