Generalized Proportional Allocation Mechanism Design for Unicast Service on the Internet

摘要

In this report we construct two mechanisms that fully implement socialwelfare maximising allocation in Nash equilibria for the case of a singleinfinitely divisible good subject to multiple inequality constraints. The firstmechanism achieves weak budget balance, while the second is an extension of thefirst, and achieves strong budget balance. One important application of thismechanism is unicast service on the Internet where a network operator wishes toallocate rates among strategic users in such a way that maximise overall usersatisfaction while respecting capacity constraints on every link in thenetwork. The emphasis of this work is on full implementation, which means thatall Nash equilibria of the induced game result in the optimal allocations ofthe centralized allocation problem.