NDLI: Balanced outcomes in social exchange networks

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Balanced outcomes in social exchange networks

Content Provider	ACM Digital Library
Author	Kleinberg, Jon Tardos, Éva
Abstract	The study of bargaining has a long history, but many basic settings are still rich with unresolved questions. In particular, consider a set of agents who engage in bargaining with one another,but instead of pairs of agents interacting in isolation,agents have the opportunity to choose whom they want to negotiate with, along the edges of a graph representing social-network relations. The area of network exchange theory in sociology has developed a large body of experimental evidence for the way in which people behave in such network-constrained bargaining situations, and it is a challenging problem to develop models that are both mathematically tractable and in general agreement with the results of these experiments. We analyze a natural theoretical model arising in network exchange theory, which can be viewed as a direct extension of the well-known Nash bargaining solution to the case of multiple agents interacting on a graph. While this generalized Nash bargaining solution is surprisingly effective at picking up even subtle differences in bargaining power that have been observed experimentally on small examples, it has remained an open question to characterize the values taken by this solution on general graphs, or to find an efficient means to compute it. Here we resolve these questions, characterizing the possible values of this bargaining solution, and giving an efficient algorithm to compute the set of possible values. Our result exploits connections to the structure of matchings in graphs, including decomposition theorems for graphs with perfect matchings, and also involves the development of new techniques. In particular, the values we are seeking turn out to correspond to a novel combinatorially defined point in the interior of a fractional relaxation of the matching problem.
Starting Page	295
Ending Page	304
Page Count	10
File Format	PDF
ISBN	9781605580470
DOI	10.1145/1374376.1376994
Language	English
Publisher	Association for Computing Machinery (ACM)
Publisher Date	2008-05-17
Publisher Place	New York
Access Restriction	Subscribed
Subject Keyword	Network exchange theory Bargaining Social networks Game theory
Content Type	Text
Resource Type	Article

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