Object Allocation via Swaps along a Social Network

International audienceThis article deals with object allocation where each agent receives a single item. Starting from an initial endowment, the agents can be better off by exchanging their objects. However, not all trades are likely because some participants are unable to communicate. By considering that the agents are embedded in a social network, we propose to study the allocations emerging from a sequence of simple swaps between pairs of neighbors in the network. This model raises natural questions regarding (i) the reachability of a given assignment, (ii) the ability of an agent to obtain a given object, and (iii) the search of Pareto-efficient allocations. We investigate the complexity of these problems by providing, according to the structure of the social network, polynomial and NP-complete cases

Strategic Payments in Financial Networks

In their seminal work on systemic risk in financial markets, Eisenberg and Noe [Larry Eisenberg and Thomas Noe, 2001] proposed and studied a model with n firms embedded into a network of debt relations. We analyze this model from a game-theoretic point of view. Every firm is a rational agent in a directed graph that has an incentive to allocate payments in order to clear as much of its debt as possible. Each edge is weighted and describes a liability between the firms. We consider several variants of the game that differ in the permissible payment strategies. We study the existence and computational complexity of pure Nash and strong equilibria, and we provide bounds on the (strong) prices of anarchy and stability for a natural notion of social welfare. Our results highlight the power of financial regulation - if payments of insolvent firms can be centrally assigned, a socially optimal strong equilibrium can be found in polynomial time. In contrast, worst-case strong equilibria can be a factor of ?(n) away from optimal, and, in general, computing a best response is an NP-hard problem. For less permissible sets of strategies, we show that pure equilibria might not exist, and deciding their existence as well as computing them if they exist constitute NP-hard problems

Chore division on a graph

The paper considers fair allocation of indivisible nondisposable items that generate disutility (chores). We assume that these items are placed in the vertices of a graph and each agent's share has to form a connected subgraph of this graph. Although a similar model has been investigated before for goods, we show that the goods and chores settings are inherently different. In particular, it is impossible to derive the solution of the chores instance from the solution of its naturally associated fair division instance. We consider three common fair division solution concepts, namely proportionality, envy-freeness and equitability, and two individual disutility aggregation functions: additive and maximum based. We show that deciding the existence of a fair allocation is hard even if the underlying graph is a path or a star. We also present some efficiently solvable special cases for these graph topologies

Local Envy-Freeness in House Allocation Problems

International audienceWe study the fair division problem consisting in allocating one item per agent so as to avoid (or minimize) envy, in a setting where only agents connected in a given social network may experience envy. In a variant of the problem, agents themselves can be located on the network by the central authority. These problems turn out to be difficult even on very simple graph structures, but we identify several tractable cases. We further provide practical algorithms and experimental insights