We study a two-sided network investment game consisting of two sets of players, called providers and users. The game is set in two stages. In the first stage, providers aim to maximize their profit by investing in bandwidth of cloud computing services. The investments of the providers yield a set of usable services for the users. In the second stage, each user wants to process a task and therefore selects a bundle of services so as to minimize the total processing time. We assume the total processing time to be separable over the chosen services and the processing time of each service to depend on the utilization of the service and the installed bandwidth. We provide insights on how competition between providers affects the total costs of the users and show that every game on a series-parallel graph can be reduced to an equivalent single edge game when analyzing the set of subgame perfect Nash equilibria.

Network pricing games provide a framework for modeling real-world settings with two types of strategic agents: owners (operators) of the network and users of the network. Owners of the network post a price for usage of the link they own so as to attract users and maximize profit; users of the network select routes based on price and level of use by other users. We point out that an equilibrium in these games may not exist, may not be unique and may induce an arbitrarily inefficient network performance. Our main result is to observe that a simple regulation on the network owners market solves all three issues above. Specifically, if an authority could set appropriate caps (upper bounds) on the tolls (prices) operators can charge, then: the game among the link operators has a unique and strong Nash equilibrium and the users' game results in a Wardrop equilibrium that achieves the optimal total delay. We call any price vector with these properties a great set of tolls. As a secondary objective, we want to compute great tolls that minimize total users' payments and we provide a linear program that does this. We obtain multiplicative approximation results compared to the optimal total users' payments for arbitrary networks with polynomial latencies of bounded degree, while in the single-commodity case we obtain a bound that only depends on the topology of the network. Lastly, we show how the same mechanism of setting appropriate caps on the allowable prices extends to the model of elastic demands.