Communication Networks A Second Course Rahul Jain (Guest Lecture) Department of EECS University of California at Berkeley

Network Bandwidth Exchange Jain and Varaiya, “The Combinatorial Seller’s Bid Double Auction: An Asymptotically Efficient Market Mechanism”, JET submission, 2006

The Framework

A Mechanism for Indivisible Goods

An Example

Basics of Mechanism Design

Nash Equilibrium Analysis

Back to Example a k =min {c k+1,v k }

Every Nash Equilibrium is efficient

The Network Case

Bayesian-Nash Equilibrium

Step 1

Step 2

Step 2, contd.

Putting it together