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Publication Citation: Systemic Risks/Benefits of Selfish Network Operations & Management in Dynamic Environment

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Author(s): Vladimir V. Marbukh;
Title: Systemic Risks/Benefits of Selfish Network Operations & Management in Dynamic Environment
Published: April 16, 2012
Abstract: Allowing selfish agents to acquire and exploit system information has both positive and negative effects on the overall performance of resource allocation systems. The positive effect results from reduction in the uncertainty inherently present in large-scale systems. The negative effect, which can be mitigated through congestion pricing, is due to agent selfishness. However, current research, concentrated around the notion of ,Price of AnarchyŠ, is mostly concerned with the negative effect. This paper evaluates systemic risks/benefits of selfish agent ability to acquire and exploit dynamic system information in a specific case of selfish routing in a large-scale, random, loss network. Our analysis indicates that the beneficial effect of this ability dominates in a case of high system uncertainty - low load, while the negative effect dominates in a case of low system uncertainty - high load. In the intermediate cases while the beneficial effect still dominates in the ,normalŠ operating mode, the negative effect manifests itself in a risk of cascading overload driving the system to an emergent metastable, i.e., persistent, congested mode. Future research should consider resource allocation models with elastic selfish users and evaluate effect of the congestion pricing.
Proceedings: 2012 IEEE/IFIP Network Operations and Management Symposium
Location: Maui, HI
Dates: April 16-June 20, 2012
Keywords: selfish agents; information availability; systemic risk
Research Areas: Information Technology
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