Algorithmic Game Theory and Transportation: A Survey

December 01, 2009
Andreas Schulz, Patrick McGovern Professor of Mathematics of Operations Research, Head of Operations Research and Statistics Group at the Sloan School of Management

Nash equilibria and related game-theoretic concepts have lately received increasing attention from the algorithms community. The “price of anarchy” has emerged as the perhaps most prominent notion. It measures the loss of efficiency in a system that is left to independent, selfishly acting agents if compared to a globally optimal, centrally coordinated solution. While this view is now used in a variety of settings including location analysis, pricing, supply chain coordination, and system design, it was originally developed in the context of transportation networks. In this lecture, I will review results on the price of anarchy and closely related concepts that have since been established in a series of papers on selfish routing in multi-commodity flow networks.

Watch the video below of Andreas Schulz’s presentation.