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.
A slightly different, but closely related model is the game analyzed by @cite_31 . Here each edge in a series-parallel network represents a producer that competes by selecting a markup that then determines a price function. The main difference to our work is that producers are identified by an edge and thus do not have the possibility to compete on other edges.
@cite_31
172279872 2013391976 2143039680 2132936659
Let a communication network be modelled by a directed graphG = (V,E) of n nodes and m edges. We consider aone-round two-player network pricing game, the Stackelberg ShortestPaths Tree (StackSPT) game. This is played on G, by assuming thatedges in E are partitioned into two sets: a set E F of edges with afixed positive real weight, and a set E P of edges that should bepriced by one of the two players (the leader). Given adistinguished node r ∈ V, the StackSPT game isthen as follows: the leader prices the edges in E P in such a waythat he will maximize his revenue, knowing that the other player(the follower) will build a shortest paths tree of G rooted at r,say S(r), by running a publicly available algorithm. Quitenaturally, for each edge selected in the solution, theleader’s revenue is assumed to be equal to the loaded priceof an edge, namely the product of the edge price times the numberof paths from r in S(r) that use it. First, we show that theproblem of maximizing the leader’s revenue is NP-hard as soonas |E P | = Θ(n). Then, in search of aneffective method for solving the problem when the size of E P isconstant, we focus on the basic case in which |E P| = 2, and we provide an efficient O(n 2 logn) timealgorithm. Afterwards, we generalize the approach to the case |E P| = k, and we show that it can be solved inpolynomial time whenever k = O(1). We study network games in which each player wishes to connect his source and sink, and the cost of each edge is shared among its users either equally (in Fair Connection Games--FCG's) or arbitrarily (in General Connection Games--GCG's). We study the existence and quality of strong equilibria (SE)--strategy profiles from which no coalition can improve the cost of each of its members--in these settings. We show that SE always exist in the following games: (1) Single source and sink FCG's and GCG's. (2) Single source multiple sinks FCG's and GCG's on series parallel graphs. (3) Multi source and sink FCG's on extension parallel graphs. As for the quality of the SE, in any FCG with n players, the cost of any SE is bounded by H(n) (i.e., the harmonic sum), contrasted with the [Theta](n) price of anarchy. For any GCG, any SE is optimal. We consider computational aspects of a game theoretic approach to network reliability. Consider a network where failure of one node may disrupt communication between two other nodes. We model this network as a simple coalitional game, called the vertex Connectivity Game (CG). In this game, each agent owns a vertex, and controls all the edges going to and from that vertex. A coalition of agents wins if it fully connects a certain subset of vertices in the graph, called the primary vertices. We show that power indices, which express an agent's ability to affect the outcome of the vertex connectivity game, can be used to identify significant possible points of failure in the communication network, and can thus be used to increase network reliability. We show that in general graphs, calculating the Banzhaf power index is #P-complete, but suggest a polynomial algorithm for calculating this index in trees. We also show a polynomial algorithm for computing the core of a CG, which allows a stable division of payments to coalition agents. We consider a network creation game in which, each player (vertex) has a limited budget to establish links to other players. In our model, each link has a unit cost and each agent tries to minimize its cost which is its local diameter or its total distance to other players in the (undirected) underlying graph of the created network. Two variants of the game are studied: in the MAX version, the cost incurred to a vertex is the maximum distance between that vertex and other vertices, and in the SUM version, the cost incurred to a vertex is the sum of distances between that vertex and other vertices. We prove that in both versions pure Nash equilibria exist, but the problem of finding the best response of a vertex is NP-hard. Next, we study the maximum possible diameter of an equilibrium graph with n vertices in various cases. For infinite numbers of n, we construct an equilibrium tree with diameter Θ(n) in the MAX version. Also, we prove that the diameter of any equilibrium tree is O(log n) in the SUM version and this bound is tight. When all vertices have unit budgets (i.e. can establish link to just one vertex), the diameter in both versions is O(1). We give an example of equilibrium graph in MAX version, such that all vertices have positive budgets and yet the diameter is as large as Ω(√log n). This interesting result shows that the diameter does not decrease necessarily and may increase as the budgets are increased. For the SUM version, we prove that every equilibrium graph has diameter 2O(√log n) when all vertices have positive budgets. Moreover, if the budget of every players is at least k, then every equilibrium graph with diameter more than 3 is k-connected.