Price of anarchy, locality gap, and a network service provider game

Authors:
Nikhil Devanur;Naveen Garg;Rohit Khandekar;Vinayaka Pandit;Amin Saberi;Vijay Vazirani
Affiliations:
College of Computing, Georgia Institute of Technology;Department of Computer Science, Indian Institute of Technology, Delhi, India;Department of Computer Science, Indian Institute of Technology, Delhi, India;IBM India Research Laboratory, New Delhi, India;Stanford University;College of Computing, Georgia Institute of Technology
Venue:
WINE'05 Proceedings of the First international conference on Internet and Network Economics
Year:
2005

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Abstract

In this paper, we define a network service provider game. We show that the price of anarchy of the defined game can be bounded by analyzing a local search heuristic for a related facility location problem called the k-facility location problem. As a result, we show that the k-facility location problem has a locality gap of 5. This result is of interest on its own. Our result gives evidence to the belief that the price of anarchy of certain games are related to analysis of local search heuristics.