Publication

Game Theory in Communications

Vojislav Gajic
2010
EPFL thesis
Abstract

Multi-user communication theory typically studies the fundamental limits of communication systems, and considers communication schemes that approach or even achieve these limits. The functioning of many such schemes assumes that users always cooperate, even when it is not in their own best interest. In practice, this assumption need not be fulfilled, as rational communication participants are often only interested in maximizing their own communication experience, and may behave in an undesirable manner from the system's point of view. Thus, communication systems may operate differently than intended if the behavior of individual participants is not taken into account. In this thesis, we study how users make decisions in wireless settings, by considering their preferences and how they interact with each other. We investigate whether the outcomes of their decisions are desirable, and, if not, what can be done to improve them. In particular, we focus on two related issues. The first is the decision-making of communication users in the absence of any central authority, which we consider in the context of the Gaussian multiple access channel. The second is the pricing of wireless resources, which we consider in the context of the competition of wireless service providers for users who are not contractually tied to any provider, but free to choose the one offering the best tradeoff of parameters. In the first part of the thesis, we model the interaction of self-interested users in a Gaussian multiple access channel using non-cooperative game theory. We demonstrate that the lack of infrastructure leads to an inefficient outcome for users who interact only once, specifically due to the lack of coordination between users. Using evolutionary game theory, we show that this inefficient outcome would also arise as a result of repeated interaction of many individuals over time. On the other hand, if the users correlate their decoding schedule with the outcome of some publicly observed (pseudo) random variable, the resulting outcome is efficient. This shows that sometimes it takes very little intervention on the part of the system planner to make sure that users choose a desirable operating point. In the second part of the thesis, we consider the competition of wireless service providers for users who are free to choose their service provider based on their channel parameters and the resource price. We model this situation as a two-stage game where the providers announce unit resource prices in the first stage and the users choose how much resource they want to purchase from each provider in the second stage. Under fairly general conditions, we show that the competitive interaction of users and providers results in socially optimal resource allocation. We also provide a decentralized primal-dual algorithm and prove its convergence to the socially optimal outcome.

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Related concepts (36)
Game theory
Game theory is the study of mathematical models of strategic interactions among rational agents. It has applications in all fields of social science, as well as in logic, systems science and computer science. The concepts of game theory are used extensively in economics as well. The traditional methods of game theory addressed two-person zero-sum games, in which each participant's gains or losses are exactly balanced by the losses and gains of other participants.
Evolutionary game theory
Evolutionary game theory (EGT) is the application of game theory to evolving populations in biology. It defines a framework of contests, strategies, and analytics into which Darwinian competition can be modelled. It originated in 1973 with John Maynard Smith and George R. Price's formalisation of contests, analysed as strategies, and the mathematical criteria that can be used to predict the results of competing strategies. Evolutionary game theory differs from classical game theory in focusing more on the dynamics of strategy change.
Communication
Communication is usually defined as the transmission of information. The term can also refer to the message itself, or the field of inquiry studying these transmissions, also known as communication studies. The precise definition of communication is disputed. Controversial issues are whether unintentional or failed transmissions are included and whether communication does not just transmit meaning but also create it. Models of communication aim to provide a simplified overview of its main components and their interaction.
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