Dynamic interventions with limited knowledge in network games

Fuente: arXiv
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Main Authors: Shakarami, Mehran, Cherukuri, Ashish, Monshizadeh, Nima
Format: Preprint
Published: 2022
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author Shakarami, Mehran
Cherukuri, Ashish
Monshizadeh, Nima
author_facet Shakarami, Mehran
Cherukuri, Ashish
Monshizadeh, Nima
contents This paper studies the problem of intervention design for steering the actions of noncooperative players in quadratic network games to the social optimum. The players choose their actions with the aim of maximizing their individual payoff functions, while a central regulator uses interventions to modify their marginal returns and maximize the social welfare function. This work builds on the key observation that the solution to the steering problem depends on the knowledge of the regulator on the players' parameters and the underlying network. We, therefore, consider different scenarios based on limited knowledge and propose suitable static, dynamic and adaptive intervention protocols. We formally prove convergence to the social optimum under the proposed mechanisms. We demonstrate our theoretical findings on a case study of Cournot competition with differentiated goods.
format Preprint
id arxiv_https___arxiv_org_abs_2205_15673
institution arXiv
publishDate 2022
record_format arxiv
spellingShingle Dynamic interventions with limited knowledge in network games
Shakarami, Mehran
Cherukuri, Ashish
Monshizadeh, Nima
Optimization and Control
Systems and Control
This paper studies the problem of intervention design for steering the actions of noncooperative players in quadratic network games to the social optimum. The players choose their actions with the aim of maximizing their individual payoff functions, while a central regulator uses interventions to modify their marginal returns and maximize the social welfare function. This work builds on the key observation that the solution to the steering problem depends on the knowledge of the regulator on the players' parameters and the underlying network. We, therefore, consider different scenarios based on limited knowledge and propose suitable static, dynamic and adaptive intervention protocols. We formally prove convergence to the social optimum under the proposed mechanisms. We demonstrate our theoretical findings on a case study of Cournot competition with differentiated goods.
title Dynamic interventions with limited knowledge in network games
topic Optimization and Control
Systems and Control
url https://arxiv.org/abs/2205.15673