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Equilibrium in a two-agent Assignment Problem

Author

Listed:
  • Giovanni Felici
  • Mariagrazia Mecoli
  • Pitu B. Mirchandani
  • Andrea Pacifici

Abstract

In this paper we address a particular generalisation of the Assignment Problem (AP) in a Multi-Agent setting, where distributed agents share common resources. We consider the problem of determining Pareto-optimal solutions that satisfy a fairness criterion (equilibrium). We show that the solution obtained is equivalent to a Kalai–Smorodinsky solution of a suitably defined bargaining problem and characterise the computational complexity of finding such an equilibrium. Additionally, we propose an exact solution algorithm based on a branch-and-bound scheme that exploits bounds obtained by suitably rounding the solutions of the corresponding linear relaxation, and give the results of extensive computational experiments.

Suggested Citation

  • Giovanni Felici & Mariagrazia Mecoli & Pitu B. Mirchandani & Andrea Pacifici, 2009. "Equilibrium in a two-agent Assignment Problem," International Journal of Operational Research, Inderscience Enterprises Ltd, vol. 6(1), pages 4-26.
  • Handle: RePEc:ids:ijores:v:6:y:2009:i:1:p:4-26
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