Implementing the wisdom of waze

Shoshana Vasserman, Michal Feldman, Avinatan Hassidim

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

We study a setting of non-atomic routing in a network of m parallel links with asymmetry of information. While a central entity (such as a GPS navigation system) - a mediator hereafter - knows the cost functions associated with the links, they are unknown to the individual agents controlling the flow. The mediator gives incentive compatible recommendations to agents, trying to minimize the total travel time. Can the mediator do better than when agents minimize their travel time selfishly without coercing agents to follow his recommendations? We study the mediation ratio: the ratio between the mediated equilibrium obtained from an incentive compatible mediation protocol and the social optimum. We find that mediation protocols can reduce the efficiency loss compared to the full revelation alternative, and compared to the non mediated Nash equilibrium. In particular, in the case of two links with affine cost functions, the mediation ratio is at most 8/7, and remains strictly smaller than the price of anarchy of 4/3 for any fixed m. Yet, it approaches the price of anarchy as m grows. For general (monotone) cost functions, the mediation ratio is at most m, a significant improvement over the unbounded price of anarchy.

Original languageEnglish
Title of host publicationIJCAI 2015 - Proceedings of the 24th International Joint Conference on Artificial Intelligence
EditorsMichael Wooldridge, Qiang Yang
PublisherInternational Joint Conferences on Artificial Intelligence
Pages660-666
Number of pages7
ISBN (Electronic)9781577357384
StatePublished - 2015
Event24th International Joint Conference on Artificial Intelligence, IJCAI 2015 - Buenos Aires, Argentina
Duration: 25 Jul 201531 Jul 2015

Publication series

NameIJCAI International Joint Conference on Artificial Intelligence
Volume2015-January
ISSN (Print)1045-0823

Conference

Conference24th International Joint Conference on Artificial Intelligence, IJCAI 2015
Country/TerritoryArgentina
CityBuenos Aires
Period25/07/1531/07/15

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