19/08/2021

Nash Welfare in the Facility Location Problem

Alexander Lam

Keywords: Agent-based and Multi-agent Systems, Computational Social Choice, Algorithmic Game Theory, Economic Paradigms, Auctions and Market-Based Systems, Voting

Abstract: In most facility location research, either an efficient facility placement which minimizes the total cost or a fairer placement which minimizes the maximum cost are typically proposed. To find a solution that is both fair and efficient, we propose converting the agent costs to utilities and placing the facility/ies such that the product of utilities, also known as the Nash welfare, is maximized. We ask whether the Nash welfare's well-studied balance between fairness and efficiency also applies to the facility location setting, and what agent strategic behaviour may occur under this facility placement.

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