A feedback control algorithm to steer networks to a Cournot-Nash equilibrium

Abstract: We propose a distributed feedback control that steers a dynamical network to a prescribed equilibrium corresponding to the so-called Cournot-Nash equilibrium. The network dynamics considered here are a class of passive nonlinear second-order systems, where production and demands act as external inputs to the systems. While productions are assumed to be controllable at each node, the demand is determined as a function of local prices according to the utility of the consumers. Using reduced information on the demand, the proposed controller guarantees the convergence of the closed loop system to the optimal equilibrium point dictated by the Cournot-Nash competition.