Pricing tree access networks with connected backbones

Vineet Goyal, Anupam Gupta, Stefano Leonardi, R. Ravi

Research output: Chapter in Book/Report/Conference proceedingConference contribution


Consider the following network subscription pricing problem. We are given a graph G= (V, E) with a root r, and potential customers are companies headquartered at r with locations at a subset of nodes. Every customer requires a network connecting its locations to r. The network provider can build this network with a combination of backbone edges (consisting of high capacity cables) that can route any subset of the customers, and access edges that can route only a single customer's traffic. The backbone edges cost M times that of the access edges. Our goal is to devise a group-strategyproof pricing mechanism for the network provider, i.e., one in which truth-telling is the optimal strategy for the customers, even in the presence of coalitions. We give a pricing mechanism that is 2-competitive and O(1)-budget-balanced. As a means to obtaining this pricing mechanism, we present the first primaldual 8-approximation algorithm for this problem. Since the two-stage Stochastic Steiner tree problem can be reduced to the underlying network design, we get a primal-dual algorithm for the stochastic problem as well. Finally, as a byproduct of our techniques, we also provide bounds on the inefficiency of our mechanism.

Original languageEnglish (US)
Title of host publicationAlgorithms - ESA 2007 - 15th Annual European Symposium, Proceedings
PublisherSpringer Verlag
Number of pages12
ISBN (Print)9783540755197
StatePublished - 2007
Event15th Annual European Symposium on Algorithms, ESA 2007 - Eilat, Israel
Duration: Oct 8 2007Oct 10 2007

Publication series

NameLecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics)
Volume4698 LNCS
ISSN (Print)0302-9743
ISSN (Electronic)1611-3349


Conference15th Annual European Symposium on Algorithms, ESA 2007

ASJC Scopus subject areas

  • Theoretical Computer Science
  • General Computer Science


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