Price and Allocation Algorithms for Markets and Networks
Prof. Lisa Fleischer
We seek a better understanding of the behavior of decentralized systems such as markets and traffic networks, through the study of effective resource allocation and price determination for these systems.
Why might markets tend toward and remain near equilibrium prices? We assume that a collection of more or less simple procedures underlie the actions of participants in the actual economy. We aim to explain why price changes in market economies might work effectively by showing simple distributed algorithms that cause prices to converge quickly toward equilibrium values. The goal of this work is to better understand price adjustment mechanisms that operate independently on each price yet achieve a coordinated outcome.
Individual network users may have an adverse impact on network performance, by acting in their own interests instead of the aggregate interest. We study equilibria of routing games to understand possible outcomes of selfish routing decisions; and we anayze methods such as taxation, rerouting, network design and policy to try and control this.