Mean Field Games in Nudge Systems for Societal Networks

TL;DR

This paper models resource sharing in societal networks using mean field games to design incentives that promote beneficial user behavior, demonstrating existence of equilibria and applying it to energy demand response.

Contribution

It introduces a mean field game framework for incentivizing societal network participants and analyzes equilibrium existence and selection methods.

Findings

Existence of mean field equilibria under various conditions.

Method for selecting attractive equilibria in societal networks.

Application to demand-response in energy systems.

Abstract

We consider the general problem of resource sharing in societal networks, consisting of interconnected communication, transportation, energy and other networks important to the functioning of society. Participants in such network need to take decisions daily, both on the quantity of resources to use as well as the periods of usage. With this in mind, we discuss the problem of incentivizing users to behave in such a way that society as a whole benefits. In order to perceive societal level impact, such incentives may take the form of rewarding users with lottery tickets based on good behavior, and periodically conducting a lottery to translate these tickets into real rewards. We will pose the user decision problem as a mean field game (MFG), and the incentives question as one of trying to select a good mean field equilibrium (MFE). In such a framework, each agent (a participant in the societal network) takes a decision based on an assumed distribution of actions of his/her competitors, and the incentives provided by the social planner. The system is said to be at MFE if the agent's action is a sample drawn from the assumed distribution. We will show the existence of such an MFE under different settings, and also illustrate how to choose an attractive equilibrium using as an example demand-response in energy networks.