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On Money as a Means of Coordination between Network Packets

Pavlos S. Efraimidis, Remous-Aris Koutsiamanis

arXiv · Aug 2012

Abstract

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. Every packet of the economy has its price, and this price determines if and when the packet will agree to buy or sell a better position. 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 improvements even when fiat money is used. We present theoretical arguments and experimental results to support our claims.

CITATION

BibTeX

efraimidis2012money 
@misc{efraimidis2012money,
  author = {Pavlos S. Efraimidis and Remous-Aris Koutsiamanis},
  title = {On Money as a Means of Coordination between Network Packets},
  year = {2012},
  month = {aug},
  eprint = {1208.3747},
  archivePrefix = {arXiv},
  primaryClass = {cs.DS},
  url = {https://arxiv.org/abs/1208.3747}
}
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