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In this paper we introduce a capacity allocation game which models theproblem of maximizing network utility from the perspective of distributednoncooperative agents. Motivated by the idea of self-managed networks, in thedeveloped framework decision-making entities are associated with individualtransmission links, deciding on the way they split capacity among concurrentflows. An efficient decentralized algorithm is given for computing stronglyPareto-optimal strategies, constituting a pure Nash equilibrium. Subsequently,we discuss the properties of the introduced game related to the Price ofAnarchy and Price of Stability. The paper is concluded with an experimentalstudy.

Pareto-optimal Nash equilibrium in capacity allocation game for self-managed networks