Welfare and Cost Aggregation for Multi-Agent Control: When to Choose Which Social Cost Function, and Why?

Bibliographic Details
Title: Welfare and Cost Aggregation for Multi-Agent Control: When to Choose Which Social Cost Function, and Why?
Authors: Shilov, Ilia, Elokda, Ezzat, Hall, Sophie, Nax, Heinrich H., Bolognani, Saverio
Publication Year: 2025
Collection: Computer Science
Mathematics
Subject Terms: Mathematics - Optimization and Control, Computer Science - Multiagent Systems, Electrical Engineering and Systems Science - Systems and Control
More Details: Many multi-agent socio-technical systems rely on aggregating heterogeneous agents' costs into a social cost function (SCF) to coordinate resource allocation in domains like energy grids, water allocation, or traffic management. The choice of SCF often entails implicit assumptions and may lead to undesirable outcomes if not rigorously justified. In this paper, we demonstrate that what determines which SCF ought to be used is the degree to which individual costs can be compared across agents and which axioms the aggregation shall fulfill. Drawing on the results from social choice theory, we provide guidance on how this process can be used in control applications. We demonstrate which assumptions about interpersonal utility comparability -- ranging from ordinal level comparability to full cardinal comparability -- together with a choice of desirable axioms, inform the selection of a correct SCF, be it the classical utilitarian sum, the Nash SCF, or maximin. We then demonstrate how the proposed framework can be applied for principled allocations of water and transportation resources.
Document Type: Working Paper
Access URL: http://arxiv.org/abs/2503.20772
Accession Number: edsarx.2503.20772
Database: arXiv
More Details
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