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Most existing work uses dual decomposition and subgradient methods to solve network optimization problems in a distributed manner, which suffer from slow convergence rate properties. This paper proposes an alternative distributed approach based on a Newton-type method for solving minimum cost network optimization problems. The key component of the method is to represent the dual Newton direction as the solution of a discrete Poisson equation involving the graph Laplacian. This representation enables using an iterative consensus-based local averaging scheme (with an additional input term) to compute the Newton direction based only on local information.
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