Cost Sharing, Capacity Investment and Pricing in Networks

by Anja Schedel

Overview

Anja Schedel analyzes two models in the field of algorithmic game theory which both constitute bilevel problems in networks. The first model is a game-theoretic variant of the well-known Steiner forest problem, and one is interested in an optimal sharing of the cost of the Steiner forest. The author provides (and partially exactly characterizes) network structures which allow for cost-minimal pure Nash equilibria. The second model is motivated from privatized public roads, in which private, selfishly acting firms build roads, and as compensation for their investment, are allowed to set prices for using the roads. For a basic model of this situation, the author shows existence and uniqueness of pure Nash equilibria. The existence result requires a non-standard proof approach since techniques like Kakutani’s fixed point theorem cannot be applied directly.

Product Details

ISBN-13:	9783658331696
Publisher:	Springer Fachmedien Wiesbaden
Publication date:	06/29/2021
Series:	Mathematische Optimierung und Wirtschaftsmathematik | Mathematical Optimization and Economathematics
Edition description:	1st ed. 2021
Pages:	236
Product dimensions:	5.83(w) x 8.27(h) x (d)

About the Author

Anja Schedel received her PhD from the University of Augsburg in Germany. She is currently working as a postdoctoral researcher at the University of Augsburg. Her main research interests lie within the field of algorithmic game theory and include, in particular, cost sharing, bilevel optimization, and flows over time.

Table of Contents

Introduction.- Preliminaries.- Cost Sharing in Networks.- Capacity and Price Competition in Networks.- Conclusion.