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Optimal cost sharing for capacitated facility location games

Listed author(s):
  • Harks, Tobias
  • von Falkenhausen, Philipp
Registered author(s):

    We consider cost sharing for a class of facility location games, where the strategy space of each player consists of the bases of a player-specific matroid defined on the set of resources. We assume that resources have nondecreasing load-dependent costs and player-specific delays. Our model includes the important special case of capacitated facility location problems, where players have to jointly pay for opened facilities. The goal is to design cost sharing protocols so as to minimize the resulting price of anarchy and price of stability. We investigate two classes of protocols: basic protocols guarantee the existence of at least one pure Nash equilibrium and separable protocols additionally require that the resulting cost shares only depend on the set of players on a resource. We find optimal basic and separable protocols that guarantee the price of stability/price of anarchy to grow logarithmically/linearly in the number of players. These results extend our previous results (cf. von Falkenhausen & Harks, 2013), where optimal basic and separable protocols were given for the case of symmetric matroid games without delays.

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    File URL: http://www.sciencedirect.com/science/article/pii/S0377221714003919
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    Article provided by Elsevier in its journal European Journal of Operational Research.

    Volume (Year): 239 (2014)
    Issue (Month): 1 ()
    Pages: 187-198

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    Handle: RePEc:eee:ejores:v:239:y:2014:i:1:p:187-198
    DOI: 10.1016/j.ejor.2014.04.048
    Contact details of provider: Web page: http://www.elsevier.com/locate/eor

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    1. Hervé Moulin & Scott Shenker, 2001. "Strategyproof sharing of submodular costs:budget balance versus efficiency," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 18(3), pages 511-533.
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    5. Milchtaich, Igal, 1996. "Congestion Games with Player-Specific Payoff Functions," Games and Economic Behavior, Elsevier, vol. 13(1), pages 111-124, March.
    6. Moulin, Hervé, 2010. "An efficient and almost budget balanced cost sharing method," Games and Economic Behavior, Elsevier, vol. 70(1), pages 107-131, September.
    7. Martin J. Osborne & Ariel Rubinstein, 1994. "A Course in Game Theory," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262650401, January.
    8. Archer, Aaron & Feigenbaum, Joan & Krishnamurthy, Arvind & Sami, Rahul & Shenker, Scott, 2004. "Approximation and collusion in multicast cost sharing," Games and Economic Behavior, Elsevier, vol. 47(1), pages 36-71, April.
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