Money-Based Coordination of Network Packets

  • Pavlos S. Efraimidis
  • Remous-Aris Koutsiamanis
Part of the Lecture Notes in Computer Science book series (LNCS, volume 7878)


In this work, we apply a common economic tool, namely money, to coordinate network packets. In particular, we present a network economy, called PacketEconomy, where each flow is modeled as a population of rational network packets, and these packets can self-regulate their access to network resources by mutually trading their positions in router queues. We consider a corresponding Markov model of trade and show that there are Nash equilibria (NE) where queue positions and money are exchanged directly between the network packets. This simple approach, interestingly, delivers significant improvements for packets and routers.


Nash Equilibrium Pure Strategy Congestion Control Average Delay Packet Delay 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.


  1. 1.
    Akella, A., Seshan, S., Karp, R., Shenker, S., Papadimitriou, C.: Selfish Behavior and Stability of the Internet: a Game-Theoretic Analysis of TCP. In: SIGCOMM 2002, pp. 117–130 (2002)Google Scholar
  2. 2.
    Chiu, D.-M., Jain, R.: Analysis of the increase/decrease algorithms for congestion avoidance in computer networks. Comp.Netw.ISDN 17(1), 1–14 (1989)zbMATHCrossRefGoogle Scholar
  3. 3.
    Cole, R., Dodis, Y., Roughgarden, T.: How much can taxes help selfish routing? In: EC 2003, pp. 98–107. ACM (2003)Google Scholar
  4. 4.
    Cole, R., Dodis, Y., Roughgarden, T.: Pricing network edges for heterogeneous selfish users. In: STOC 2003, pp. 521–530. ACM (2003)Google Scholar
  5. 5.
    Efraimidis, P.S., Koutsiamanis, R.-A.: On money as a means of coordination between network packets. CoRR, abs/1208.3747 (2012)Google Scholar
  6. 6.
    Efraimidis, P.S., Tsavlidis, L., Mertzios, G.B.: Window-games between TCP flows. Theoretical Computer Science 411(31-33), 2798–2817 (2010)MathSciNetzbMATHCrossRefGoogle Scholar
  7. 7.
    Fisher, R.A., Yates, F.: Statistical tables for biological, agricultural and medical research, 3rd edn. (1948)Google Scholar
  8. 8.
    Gao, X., Jain, K., Schulman, L.J.: Fair and efficient router congestion control. In: SODA 2004, pp. 1050–1059 (2004)Google Scholar
  9. 9.
    Gibbens, R.J., Kelly, F.P.: Resource pricing and the evolution of congestion control. Automatica 35, 1969–1985 (1999)MathSciNetzbMATHCrossRefGoogle Scholar
  10. 10.
    Gintis, H.: A markov model of production, trade, and money: Theory and artificial life simulation. Comput. Math. Organ. Theory 3(1), 19–41 (1997)MathSciNetzbMATHCrossRefGoogle Scholar
  11. 11.
    Gintis, H.: Game Theory Evolving: A Problem-Centered Introduction to Modeling Strategic Interaction. Princeton University Press (2000)Google Scholar
  12. 12.
    Karp, R., Koutsoupias, E., Papadimitriou, C., Shenker, S.: Optimization problems in congestion control. In: FOCS 2000, p. 66. IEEE Computer Society (2000)Google Scholar
  13. 13.
    Kiyotaki, N., Wright, R.: On money as a medium of exchange. Journal of Political Economy 97(4), 927–954 (1989)CrossRefGoogle Scholar
  14. 14.
    Knuth, D.E.: The Art of Computer Programming, 2nd edn. Seminumerical Algorithms, vol. 2. Addison-Wesley Publishing Company (1981)Google Scholar
  15. 15.
    Koutsoupias, E., Papadimitriou, C.: Worst-case equilibria. In: Meinel, C., Tison, S. (eds.) STACS 1999. LNCS, vol. 1563, pp. 404–413. Springer, Heidelberg (1999)CrossRefGoogle Scholar
  16. 16.
    MacKie-Mason, J.K., Varian, H.R.: Pricing the internet. In: Public Access to the Internet, pp. 269–314. Prentice Hall (1993)Google Scholar
  17. 17.
    McKnight, L.W., Bailey, J.P. (eds.): Internet Economics. MIT Press (1997)Google Scholar
  18. 18.
    Odlyzko, A.: Paris metro pricing for the internet. In: EC 1999, pp. 140–147. ACM (1999)Google Scholar
  19. 19.
    Papadimitriou, C.: Algorithms, games, and the internet. In: ACM STOC 2001, pp. 749–753 (2001)Google Scholar
  20. 20.
    Shenker, S.J.: Making greed work in networks: a game-theoretic analysis of switch service disciplines. IEEE/ACM Trans. Netw. 3(6), 819–831 (1995)MathSciNetCrossRefGoogle Scholar
  21. 21.
    Smith, A.: An Inquiry into the Nature and Causes of the Wealth of Nations. Project gutenberg ebook edition (1776)Google Scholar
  22. 22.
    Wikipedia. Fisher-Yates shuffle (entry) (2011) (accessed February 06, 2011)Google Scholar

Copyright information

© Springer-Verlag Berlin Heidelberg 2013

Authors and Affiliations

  • Pavlos S. Efraimidis
    • 1
  • Remous-Aris Koutsiamanis
    • 1
  1. 1.Dept. of Electrical and Computer EngineeringDemocritus Univ. of ThraceXanthiGreece

Personalised recommendations