"The Cost of Stability in Network Flow Games" Speaker: Ezra Resnick, The Hebrew University Date: Wednesday, 4 February 2009 Time: 12noon Place: Ross 201 Abstract: Cooperative game theory solution concepts define ways of dividing a coalition's gains among its members ("imputations"). A prominent solution concept is the core, focusing on stable imputations where no subset of agents has an incentive to leave the grand coalition. However, some games have empty cores. We consider stabilizing cooperative games by having an external party offer a supplemental payment to the grand coalition. The adjusted gains, the sum of this payment and the original gains of the coalition, may be divided among agents in a stable manner. We call a division of the adjusted gains a super-imputation, and the minimal sum of payments that stabilizes a game the cost of stability (CoS). We examine the CoS in threshold network flow games, where each agent controls an edge in the network and a coalition of agents succeeds if the maximal flow it can send from the source to the sink exceeds a certain threshold. We show that it is CoNP-complete to determine whether a given super-imputation in such a game is stable. We give bounds on the CoS in general network flow games, and provide efficient algorithms for computing the CoS and finding stable super-imputations in several restricted cases. Joint work with Yoram Bachrach and Jeff Rosenschein.