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Network Formation: Neighborhood Structures, Establishment Costs, and Distributed Learning

Chasparis, Georgios LU and Shamma, Jeff S. (2013) In IEEE Transactions on Cybernetics 43(6). p.1950-1962
Abstract
We consider the problem of network formation in a distributed fashion. Network formation is modeled as a strategic-form game, where agents represent nodes that form and sever unidirectional links with other nodes and derive utilities from these links. Furthermore, agents can form links only with a limited set of neighbors. Agents trade off the benefit from links, which is determined by a distance-dependent reward function, and the cost of maintaining links. When each agent acts independently, trying to maximize its own utility function, we can characterize "stable" networks through the notion of Nash equilibrium. In fact, the introduced reward and cost functions lead to Nash equilibria (networks), which exhibit several desirable properties... (More)
We consider the problem of network formation in a distributed fashion. Network formation is modeled as a strategic-form game, where agents represent nodes that form and sever unidirectional links with other nodes and derive utilities from these links. Furthermore, agents can form links only with a limited set of neighbors. Agents trade off the benefit from links, which is determined by a distance-dependent reward function, and the cost of maintaining links. When each agent acts independently, trying to maximize its own utility function, we can characterize "stable" networks through the notion of Nash equilibrium. In fact, the introduced reward and cost functions lead to Nash equilibria (networks), which exhibit several desirable properties such as connectivity, bounded-hop diameter, and efficiency (i.e., minimum number of links). Since Nash networks may not necessarily be efficient, we also explore the possibility of "shaping" the set of Nash networks through the introduction of state-based utility functions. Such utility functions may represent dynamic phenomena such as establishment costs (either positive or negative). Finally, we show how Nash networks can be the outcome of a distributed learning process. In particular, we extend previous learning processes to so-called "state-based" weakly acyclic games, and we show that the proposed network formation games belong to this class of games. (Less)
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author
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organization
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type
Contribution to journal
publication status
published
subject
keywords
Ad hoc networks, distributed algorithms, distributed network formation, game theory, learning automata, wireless networks
in
IEEE Transactions on Cybernetics
volume
43
issue
6
pages
1950 - 1962
publisher
IEEE - Institute of Electrical and Electronics Engineers Inc.
external identifiers
  • wos:000327647500036
  • scopus:84890019847
  • pmid:23757585
ISSN
2168-2267
DOI
10.1109/TSMCB.2012.2236553
language
English
LU publication?
yes
id
cc6d5e0d-d9fa-4bf1-9e2a-121a62834f24 (old id 4272429)
date added to LUP
2016-04-01 14:55:31
date last changed
2022-03-29 23:31:29
@article{cc6d5e0d-d9fa-4bf1-9e2a-121a62834f24,
  abstract     = {{We consider the problem of network formation in a distributed fashion. Network formation is modeled as a strategic-form game, where agents represent nodes that form and sever unidirectional links with other nodes and derive utilities from these links. Furthermore, agents can form links only with a limited set of neighbors. Agents trade off the benefit from links, which is determined by a distance-dependent reward function, and the cost of maintaining links. When each agent acts independently, trying to maximize its own utility function, we can characterize "stable" networks through the notion of Nash equilibrium. In fact, the introduced reward and cost functions lead to Nash equilibria (networks), which exhibit several desirable properties such as connectivity, bounded-hop diameter, and efficiency (i.e., minimum number of links). Since Nash networks may not necessarily be efficient, we also explore the possibility of "shaping" the set of Nash networks through the introduction of state-based utility functions. Such utility functions may represent dynamic phenomena such as establishment costs (either positive or negative). Finally, we show how Nash networks can be the outcome of a distributed learning process. In particular, we extend previous learning processes to so-called "state-based" weakly acyclic games, and we show that the proposed network formation games belong to this class of games.}},
  author       = {{Chasparis, Georgios and Shamma, Jeff S.}},
  issn         = {{2168-2267}},
  keywords     = {{Ad hoc networks; distributed algorithms; distributed network formation; game theory; learning automata; wireless networks}},
  language     = {{eng}},
  number       = {{6}},
  pages        = {{1950--1962}},
  publisher    = {{IEEE - Institute of Electrical and Electronics Engineers Inc.}},
  series       = {{IEEE Transactions on Cybernetics}},
  title        = {{Network Formation: Neighborhood Structures, Establishment Costs, and Distributed Learning}},
  url          = {{http://dx.doi.org/10.1109/TSMCB.2012.2236553}},
  doi          = {{10.1109/TSMCB.2012.2236553}},
  volume       = {{43}},
  year         = {{2013}},
}