Welfare and Cost Aggregation for Multi-Agent Control: When to Choose Which Social Cost Function, and Why?

Fuente: arXiv
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Autores principales: Shilov, Ilia, Elokda, Ezzat, Hall, Sophie, Nax, Heinrich H., Bolognani, Saverio
Formato: Preprint
Publicado: 2025
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author Shilov, Ilia
Elokda, Ezzat
Hall, Sophie
Nax, Heinrich H.
Bolognani, Saverio
author_facet Shilov, Ilia
Elokda, Ezzat
Hall, Sophie
Nax, Heinrich H.
Bolognani, Saverio
contents Many multi-agent socio-technical systems rely on aggregating heterogeneous agents' costs into a social cost function (SCF) to coordinate resource allocation in domains like energy grids, water allocation, or traffic management. The choice of SCF often entails implicit assumptions and may lead to undesirable outcomes if not rigorously justified. In this paper, we demonstrate that what determines which SCF ought to be used is the degree to which individual costs can be compared across agents and which axioms the aggregation shall fulfill. Drawing on the results from social choice theory, we provide guidance on how this process can be used in control applications. We demonstrate which assumptions about interpersonal utility comparability - ranging from ordinal level comparability to full cardinal comparability - together with a choice of desirable axioms, inform the selection of a correct SCF, be it the classical utilitarian sum, the Nash SCF, or maximin. We then demonstrate how the proposed framework can be applied for principled allocations of water and transportation resources.
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publishDate 2025
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spellingShingle Welfare and Cost Aggregation for Multi-Agent Control: When to Choose Which Social Cost Function, and Why?
Shilov, Ilia
Elokda, Ezzat
Hall, Sophie
Nax, Heinrich H.
Bolognani, Saverio
Optimization and Control
Multiagent Systems
Systems and Control
Many multi-agent socio-technical systems rely on aggregating heterogeneous agents' costs into a social cost function (SCF) to coordinate resource allocation in domains like energy grids, water allocation, or traffic management. The choice of SCF often entails implicit assumptions and may lead to undesirable outcomes if not rigorously justified. In this paper, we demonstrate that what determines which SCF ought to be used is the degree to which individual costs can be compared across agents and which axioms the aggregation shall fulfill. Drawing on the results from social choice theory, we provide guidance on how this process can be used in control applications. We demonstrate which assumptions about interpersonal utility comparability - ranging from ordinal level comparability to full cardinal comparability - together with a choice of desirable axioms, inform the selection of a correct SCF, be it the classical utilitarian sum, the Nash SCF, or maximin. We then demonstrate how the proposed framework can be applied for principled allocations of water and transportation resources.
title Welfare and Cost Aggregation for Multi-Agent Control: When to Choose Which Social Cost Function, and Why?
topic Optimization and Control
Multiagent Systems
Systems and Control
url https://arxiv.org/abs/2503.20772