Bertrand Competition in Networks

We study price-of-anarchy type questions in two-sided markets with combinatorial consumers and limited supply sellers. Sellers own edges in a network and sell bandwidth at fixed prices subject to capacity constraints; consumers buy bandwidth between their

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Editorial Board David Hutchison Lancaster University, UK Takeo Kanade Carnegie Mellon University, Pittsburgh, PA, USA Josef Kittler University of Surrey, Guildford, UK Jon M. Kleinberg Cornell University, Ithaca, NY, USA Alfred Kobsa University of California, Irvine, CA, USA Friedemann Mattern ETH Zurich, Switzerland John C. Mitchell Stanford University, CA, USA Moni Naor Weizmann Institute of Science, Rehovot, Israel Oscar Nierstrasz University of Bern, Switzerland C. Pandu Rangan Indian Institute of Technology, Madras, India Bernhard Steffen University of Dortmund, Germany Madhu Sudan Massachusetts Institute of Technology, MA, USA Demetri Terzopoulos University of California, Los Angeles, CA, USA Doug Tygar University of California, Berkeley, CA, USA Gerhard Weikum Max-Planck Institute of Computer Science, Saarbruecken, Germany

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Burkhard Monien Ulf-Peter Schroeder (Eds.)

Algorithmic Game Theory First International Symposium, SAGT 2008 Paderborn, Germany, April 30 – May 2, 2008 Proceedings

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Volume Editors Burkhard Monien Ulf-Peter Schroeder Universität Paderborn Institut für Informatik Fürstenallee 11, 33102 Paderborn, Germany E-mail: {bm,ups}@upb.de

Library of Congress Control Number: 2008925094 CR Subject Classification (1998): H.4, K.4.4, J.1, J.4, G.1.2 LNCS Sublibrary: SL 3 – Information Systems and Application, incl. Internet/Web and HCI ISSN ISBN-10 ISBN-13

0302-9743 3-540-79308-9 Springer Berlin Heidelberg New York 978-3-540-79308-3 Springer Berlin Heidelberg New York

This work is subject to copyright. All rights are reserved, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, re-use of illustrations, recitation, broadcasting, reproduction on microfilms or in any other way, and storage in data banks. Duplication of this publication or parts thereof is permitted only under the provisions of the German Copyright Law of September 9, 1965, in its current version, and permission for use must always be obtained from Springer. Violations are liable to prosecution under the German Copyright Law. Springer is a part of Springer Science+Business Media springer.com © Springer-Verlag Berlin Heidelberg 2008 Printed in Germany Typesetting: Camera-ready by author, data conversion by Scientific Publishing Services, Chennai, India Printed on acid-free paper SPIN: 12259106 06/3180 543210

Preface

This volume contains the papers presented at the First International Symposium on Algorithmic Game Theory (SAGT 2008) held from April 30 to May 2 in Paderborn, Germany. The purpose of SAGT is to bring together researchers from computer science, economics and mathematics to present and discuss original research at the intersection of algorithms and game theory. It is intended to cover all important areas of algorithmic game theory, such as: solution concepts in game theory; game classes (e.g., bimatrix, potential, Bayesian); exact and approximate computation of equilibria; convergence and learning in games; complexity classes in game theory; algorithmic aspect