Matroids are Immune to Braess Paradox

The famous Braess paradox describes the following phenomenon: It might happen that the improvement of resources, like building a new street within a congested network, may in fact lead to larger costs for the players in an equilibrium. In this paper we consider general nonatomic congestion games and give a characterization of the maximal combinatorial property of strategy spaces for which Braess paradox does not occur. In a nutshell, bases of matroids are exactly this maximal structure. We prove our characterization by two novel sensitivity results for convex separable optimization problems over polymatroid base polyhedra which may be of independent interest.Comment: 21 page

A Characterization of Undirected Graphs Admitting Optimal Cost Shares

In a seminal paper, Chen, Roughgarden and Valiant studied cost sharing protocols for network design with the objective to implement a low-cost Steiner forest as a Nash equilibrium of an induced cost-sharing game. One of the most intriguing open problems to date is to understand the power of budget-balanced and separable cost sharing protocols in order to induce low-cost Steiner forests. In this work, we focus on undirected networks and analyze topological properties of the underlying graph so that an optimal Steiner forest can be implemented as a Nash equilibrium (by some separable cost sharing protocol) independent of the edge costs. We term a graph efficient if the above stated property holds. As our main result, we give a complete characterization of efficient undirected graphs for two-player network design games: an undirected graph is efficient if and only if it does not contain (at least) one out of few forbidden subgraphs. Our characterization implies that several graph classes are efficient: generalized series-parallel graphs, fan and wheel graphs and graphs with small cycles.Comment: 60 pages, 69 figures, OR 2017 Berlin, WINE 2017 Bangalor