On the Price of Anarchy of Highly Congested Nonatomic Network Games

We consider nonatomic network games with one source and one destination. We examine the asymptotic behavior of the price of anarchy as the inflow increases. In accordance with some empirical observations, we show that, under suitable conditions, the price of anarchy is asymptotic to one. We show with some counterexamples that this is not always the case. The counterexamples occur in very simple parallel graphs.Comment: 26 pages, 6 figure

The price of anarchy in routing games as a function of the demand

The price of anarchy has become a standard measure of the efficiency of equilibria in games. Most of the literature in this area has focused on establishing worst-case bounds for specific classes of games, such as routing games or more general congestion games. Recently, the price of anarchy in routing games has been studied as a function of the traffic demand, providing asymptotic results in light and heavy traffic. The aim of this paper is to study the price of anarchy in nonatomic routing games in the intermediate region of the demand. To achieve this goal, we begin by establishing some smoothness properties of Wardrop equilibria and social optima for general smooth costs. In the case of affine costs we show that the equilibrium is piecewise linear, with break points at the demand levels at which the set of active paths changes. We prove that the number of such break points is finite, although it can be exponential in the size of the network. Exploiting a scaling law between the equilibrium and the social optimum, we derive a similar behavior for the optimal flows. We then prove that in any interval between break points the price of anarchy is smooth and it is either monotone (decreasing or increasing) over the full interval, or it decreases up to a certain minimum point in the interior of the interval and increases afterwards. We deduce that for affine costs the maximum of the price of anarchy can only occur at the break points. For general costs we provide counterexamples showing that the set of break points is not always finite

A Hydraulic Approach to Equilibria of Resource Selection Games

Drawing intuition from a (physical) hydraulic system, we present a novel framework, constructively showing the existence of a strong Nash equilibrium in resource selection games (i.e., asymmetric singleton congestion games) with nonatomic players, the coincidence of strong equilibria and Nash equilibria in such games, and the uniqueness of the cost of each given resource across all Nash equilibria. Our proofs allow for explicit calculation of Nash equilibrium and for explicit and direct calculation of the resulting (unique) costs of resources, and do not hinge on any fixed-point theorem, on the Minimax theorem or any equivalent result, on linear programming, or on the existence of a potential (though our analysis does provide powerful insights into the potential, via a natural concrete physical interpretation). A generalization of resource selection games, called resource selection games with I.D.-dependent weighting, is defined, and the results are extended to this family, showing the existence of strong equilibria, and showing that while resource costs are no longer unique across Nash equilibria in games of this family, they are nonetheless unique across all strong Nash equilibria, drawing a novel fundamental connection between group deviation and I.D.-congestion. A natural application of the resulting machinery to a large class of constraint-satisfaction problems is also described.Comment: Hebrew University of Jerusalem Center for the Study of Rationality discussion paper 67

Static Stability in Games

Static stability of equilibrium in strategic games differs from dynamic stability in not being linked to any particular dynamical system. In other words, it does not make any assumptions about off-equilibrium behavior. Examples of static notions of stability include evolutionarily stable strategy (ESS) and continuously stable strategy (CSS), both of which are meaningful or justifiable only for particular classes of games, namely, symmetric multilinear games or symmetric games with a unidimensional strategy space, respectively. This paper presents a general notion of local static stability, of which the above two are essentially special cases. It is applicable to virtually all n-person strategic games, both symmetric and asymmetric, with non-discrete strategy spaces.Stability of equilibrium, static stability

Altruism in Atomic Congestion Games

This paper studies the effects of introducing altruistic agents into atomic congestion games. Altruistic behavior is modeled by a trade-off between selfish and social objectives. In particular, we assume agents optimize a linear combination of personal delay of a strategy and the resulting increase in social cost. Our model can be embedded in the framework of congestion games with player-specific latency functions. Stable states are the Nash equilibria of these games, and we examine their existence and the convergence of sequential best-response dynamics. Previous work shows that for symmetric singleton games with convex delays Nash equilibria are guaranteed to exist. For concave delay functions we observe that there are games without Nash equilibria and provide a polynomial time algorithm to decide existence for symmetric singleton games with arbitrary delay functions. Our algorithm can be extended to compute best and worst Nash equilibria if they exist. For more general congestion games existence becomes NP-hard to decide, even for symmetric network games with quadratic delay functions. Perhaps surprisingly, if all delay functions are linear, then there is always a Nash equilibrium in any congestion game with altruists and any better-response dynamics converges. In addition to these results for uncoordinated dynamics, we consider a scenario in which a central altruistic institution can motivate agents to act altruistically. We provide constructive and hardness results for finding the minimum number of altruists to stabilize an optimal congestion profile and more general mechanisms to incentivize agents to adopt favorable behavior.Comment: 13 pages, 1 figure, includes some minor adjustment

Joint strategy fictitious play with inertia for potential games

We consider multi-player repeated games involving a large number of players with large strategy spaces and enmeshed utility structures. In these ldquolarge-scalerdquo games, players are inherently faced with limitations in both their observational and computational capabilities. Accordingly, players in large-scale games need to make their decisions using algorithms that accommodate limitations in information gathering and processing. This disqualifies some of the well known decision making models such as ldquoFictitious Playrdquo (FP), in which each player must monitor the individual actions of every other player and must optimize over a high dimensional probability space. We will show that Joint Strategy Fictitious Play (JSFP), a close variant of FP, alleviates both the informational and computational burden of FP. Furthermore, we introduce JSFP with inertia, i.e., a probabilistic reluctance to change strategies, and establish the convergence to a pure Nash equilibrium in all generalized ordinal potential games in both cases of averaged or exponentially discounted historical data. We illustrate JSFP with inertia on the specific class of congestion games, a subset of generalized ordinal potential games. In particular, we illustrate the main results on a distributed traffic routing problem and derive tolling procedures that can lead to optimized total traffic congestion

Fragility of the Commons under Prospect-Theoretic Risk Attitudes

We study a common-pool resource game where the resource experiences failure with a probability that grows with the aggregate investment in the resource. To capture decision making under such uncertainty, we model each player's risk preference according to the value function from prospect theory. We show the existence and uniqueness of a pure Nash equilibrium when the players have heterogeneous risk preferences and under certain assumptions on the rate of return and failure probability of the resource. Greater competition, vis-a-vis the number of players, increases the failure probability at the Nash equilibrium; we quantify this effect by obtaining bounds on the ratio of the failure probability at the Nash equilibrium to the failure probability under investment by a single user. We further show that heterogeneity in attitudes towards loss aversion leads to higher failure probability of the resource at the equilibrium.Comment: Accepted for publication in Games and Economic Behavior, 201

A Study of Problems Modelled as Network Equilibrium Flows

This thesis presents an investigation into selfish routing games from three main perspectives. These three areas are tied together by a common thread that runs through the main text of this thesis, namely selfish routing games and network equilibrium flows. First, it investigates methods and models for nonatomic selfish routing and then develops algorithms for solving atomic selfish routing games. A number of algorithms are introduced for the atomic selfish routing problem, including dynamic programming for a parallel network and a metaheuristic tabu search. A piece-wise mixed-integer linear programming problem is also presented which allows standard solvers to solve the atomic selfish routing problem. The connection between the atomic selfish routing problem, mixed-integer linear programming and the multicommodity flow problem is explored when constrained by unsplittable flows or flows that are restricted to a number of paths. Additionally, some novel probabilistic online learning algorithms are presented and compared with the equilibrium solution given by the potential function of the nonatomic selfish routing game. Second, it considers multi-criteria extensions of selfish routing and the inefficiency of the equilibrium solutions when compared with social cost. Models are presented that allow exploration of the Pareto set of solutions for a weighted sum model (akin to the social cost) and the equilibrium solution. A means by which these solutions can be measured based on the Price of Anarchy for selfish routing games is also presented. Third, it considers the importance and criticality of components of the network (edges, vertices or a collection of both) within a selfish routing game and the impact of their removal. Existing network science measures and demand-based measures are analysed to assess the change in total travel time and issues highlighted. A new measure which solves these issues is presented and the need for such a measure is evaluated. Most of the new findings have been disseminated through conference talks and journal articles, while others represent the subject of papers currently in preparation