Vidal's libraryTitle: | Balanced Outcomes in Social Exchange Networks |
Author: | Jon Kleinberg and Eva Tardos |
Book Tittle: | Proceedings of the 40th ACM Symposium on Theory of Computing |
Year: | 2008 |
Abstract: | The study of bargaining has a long history, but many basic settings are still rich with unresolved questions. In particular, consider a set of agents who engage in bargaining with one another, but instead of pairs of agents interacting in isolation, agents have the opportunity to choose whom they want to negotiate with, along the edges of a graph representing social-network relations. The area of network exchange theory in sociology has developed a large body of experimental evidence for the way in which people behave in such network-constrained bargaining situations, and it is a challenging problem to develop models that are both mathematically tractable and in general agreement with the results of these experiments. We analyze a natural theoretical model arising in network exchange theory, which can be viewed as a direct extension of the well-known Nash bargaining solution to the case of multiple agents interacting on a graph. While this generalized Nash bargaining solution is surprisingly effective at picking up even subtle differences in bargaining power that have been observed experimentally on small examples, it has remained an open question to characterize the values taken by this solution on general graphs, or to find an efficient means to compute it. Here we resolve these questions, characterizing the possible values of this bargaining solution, and giving an efficient algorithm to compute the set of possible values. Our result exploits connections to the structure of matchings in graphs, including decomposition theorems for graphs with perfect matchings, and also involves the development of new techniques. In particular, the values we are seeking turn out to correspond to a novel combinatorially defined point in the interior of a fractional relaxation of the matching problem. |
Cited by 1 - Google Scholar
@InProceedings{kleinberg08a,
author = {Jon Kleinberg and Eva Tardos},
title = {Balanced Outcomes in Social Exchange Networks},
booktitle = {Proceedings of the 40th {ACM} Symposium on Theory of
Computing},
cluster = {4259751300215444882},
year = 2008,
abstract = {The study of bargaining has a long history, but many
basic settings are still rich with unresolved
questions. In particular, consider a set of agents
who engage in bargaining with one another, but
instead of pairs of agents interacting in isolation,
agents have the opportunity to choose whom they want
to negotiate with, along the edges of a graph
representing social-network relations. The area of
network exchange theory in sociology has developed a
large body of experimental evidence for the way in
which people behave in such network-constrained
bargaining situations, and it is a challenging
problem to develop models that are both
mathematically tractable and in general agreement
with the results of these experiments. We analyze a
natural theoretical model arising in network
exchange theory, which can be viewed as a direct
extension of the well-known Nash bargaining solution
to the case of multiple agents interacting on a
graph. While this generalized Nash bargaining
solution is surprisingly effective at picking up
even subtle differences in bargaining power that
have been observed experimentally on small examples,
it has remained an open question to characterize the
values taken by this solution on general graphs, or
to find an efficient means to compute it. Here we
resolve these questions, characterizing the possible
values of this bargaining solution, and giving an
efficient algorithm to compute the set of possible
values. Our result exploits connections to the
structure of matchings in graphs, including
decomposition theorems for graphs with perfect
matchings, and also involves the development of new
techniques. In particular, the values we are seeking
turn out to correspond to a novel combinatorially
defined point in the interior of a fractional
relaxation of the matching problem. },
url = {http://jmvidal.cse.sc.edu/library/kleinberg08a.pdf}
}
Last modified: Wed Mar 9 10:16:55 EST 2011