A Distributed Algorithm for the Assignment Problem

This paper describes a new algorithm for solving the classical assignment problem. The algorithm is of a primal-dual nature and in some ways resembles the Hungarian and subgradient methods, but is substantially different in other respects. Its main feature is that it is well suited for distributed operation whereby each node participates in the computation on the basis of limited local information about the topology of the network and the data of the problem. The algorithmic process resembles an auc-tion where economic agents compete for resources by making successively higher bids. The algorithm terminates in a finite number of iterations after resource prices reach levels where no further bidding is profitable.