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Strategic Path Reliability in Information Networks

Author

Listed:
  • Rajgopal Kannan
  • Sudipta Sarangi
  • S. S. Iyengar

Abstract

We consider a model of an information network where nodes can fail and transmission of information is costly. The formation of paths in such networks is modeled as the Nash equilibrium of an N player routing game. The task of obtaining this equilibrium is shown to be NP-Hard. We derive analytical results to identify conditions under which the equilibrium path is congruent to well known paths such as the most reliable or cheapest neighbor path. The issue of characterizing off-equilibrium paths in the game is addressed and different path utility metrics proposed. Our first metric measures the degree of individual node suboptimality by evaluating paths in terms of the weakness of the worst-off player. It is shown that there exist information networks not containing paths of weakness less than Vr/3. Consequently, guaranteeing approximate equilibrium paths of bounded weakness is computationally difficult. We next propose a team game with players having a common payoff function whose equilibrium outcome can be computed in polynomial time. Finally, a fair team game with bounded payoffdifference is proposed whose equilibrium is also easily computable.

Suggested Citation

  • Rajgopal Kannan & Sudipta Sarangi & S. S. Iyengar, 2002. "Strategic Path Reliability in Information Networks," Discussion Papers of DIW Berlin 298, DIW Berlin, German Institute for Economic Research.
  • Handle: RePEc:diw:diwwpp:dp298
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    References listed on IDEAS

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    More about this item

    Keywords

    Nash Networks; Equilibrium Complexity; Team Games;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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