Shannon Meets Nash on the Interference Channel

Abstract: The interference channel is the simplest communication scenario where multiple autonomous users compete for shared resources. We combine game theory and information theory to define a notion of a Nash equilibrium region of the interference channel. The notion is game theoretic: it captures the selfish behavior of each user as they compete. The notion is also information theoretic: it allows each user to use arbitrary communication strategies as it optimizes its own performance. We give an exact characterization of the Nash equilibrium region of the two-user linear deterministic interference channel and an approximate characterization of the Nash equilibrium region of the two-user Gaussian interference channel to within 1 bit/s/Hz..