On strong equilibria and improvement dynamics in network creation games

We study strong equilibria in network creation games. These form a classical and well-studied class of games where a set of players form a network by buying edges to their neighbors at a cost of a fixed parameter \xce\xb1. The cost of a player is defined to be the cost of the bought edges plus the sum of distances to all the players in the resulting graph. We identify and characterize various structural properties of strong equilibria, which lead to a characterization of the set of strong equilibria for all \xce\xb1 in the range (0, 2). For \xce\xb1> 2, Andelman et al. [4] prove that a star graph in which every leaf buys one edge to the center node is a strong equilibrium, and conjecture that in fact any star is a strong equilibrium. We resolve this conjecture in the affirmative. Additionally, we show that when \xce\xb1 is large enough (\xe2\x89\xa5 2 n) there exist non-star trees that are strong equilibria. For the strong price of anarchy, we provide precise expressions when \xce\xb1 is in the range (0, 2), and we prove a lower bound of 3/2 when \xce\xb1\xe2\x89\xa5 2. Lastly, we aim to characterize under which conditions (coalitional) improvement dynamics may converge to a strong equilibrium. To this end, we study the (coalitional) finite improvement property and (coalitional) weak acyclicity property. We prove various conditions under which these properties do and do not hold. Some of these results also hold for the class of pure Nash equilibria

Collaborative Decision-Making and the k-Strong Price of Anarchy in Common Interest Games

The control of large-scale, multi-agent systems often entails distributing decision-making across the system components. However, with advances in communication and computation technologies, we can consider new collaborative decision-making paradigms that exist somewhere between centralized and distributed control. In this work, we seek to understand the benefits and costs of increased collaborative communication in multi-agent systems. We specifically study this in the context of common interest games in which groups of up to k agents can coordinate their actions in maximizing the common objective function. The equilibria that emerge in these systems are the k-strong Nash equilibria of the common interest game; studying the properties of these states can provide relevant insights into the efficacy of inter-agent collaboration. Our contributions come threefold: 1) provide bounds on how well k-strong Nash equilibria approximate the optimal system welfare, formalized by the k-strong price of anarchy, 2) study the run-time and transient performance of collaborative agent-based dynamics, and 3) consider the task of redesigning objectives for groups of agents which improve system performance. We study these three facets generally as well as in the context of resource allocation problems, in which we provide tractable linear programs that give tight bounds on the k-strong price of anarchy.Comment: arXiv admin note: text overlap with arXiv:2308.0804

Information-Sharing and Privacy in Social Networks

We present a new model for reasoning about the way information is shared among friends in a social network, and the resulting ways in which it spreads. Our model formalizes the intuition that revealing personal information in social settings involves a trade-off between the benefits of sharing information with friends, and the risks that additional gossiping will propagate it to people with whom one is not on friendly terms. We study the behavior of rational agents in such a situation, and we characterize the existence and computability of stable information-sharing networks, in which agents do not have an incentive to change the partners with whom they share information. We analyze the implications of these stable networks for social welfare, and the resulting fragmentation of the social network

Efficient Equilibria in Polymatrix Coordination Games

We consider polymatrix coordination games with individual preferences where every player corresponds to a node in a graph who plays with each neighbor a separate bimatrix game with non-negative symmetric payoffs. In this paper, we study $\alpha$-approximate $k$-equilibria of these games, i.e., outcomes where no group of at most $k$ players can deviate such that each member increases his payoff by at least a factor $\alpha$. We prove that for $\alpha \ge 2$ these games have the finite coalitional improvement property (and thus $\alpha$-approximate $k$-equilibria exist), while for $\alpha < 2$ this property does not hold. Further, we derive an almost tight bound of $2\alpha(n-1)/(k-1)$ on the price of anarchy, where $n$ is the number of players; in particular, it scales from unbounded for pure Nash equilibria ($k = 1)$ to $2\alpha$ for strong equilibria ($k = n$). We also settle the complexity of several problems related to the verification and existence of these equilibria. Finally, we investigate natural means to reduce the inefficiency of Nash equilibria. Most promisingly, we show that by fixing the strategies of $k$ players the price of anarchy can be reduced to $n/k$ (and this bound is tight)

Approximate Equilibrium and Incentivizing Social Coordination

We study techniques to incentivize self-interested agents to form socially desirable solutions in scenarios where they benefit from mutual coordination. Towards this end, we consider coordination games where agents have different intrinsic preferences but they stand to gain if others choose the same strategy as them. For non-trivial versions of our game, stable solutions like Nash Equilibrium may not exist, or may be socially inefficient even when they do exist. This motivates us to focus on designing efficient algorithms to compute (almost) stable solutions like Approximate Equilibrium that can be realized if agents are provided some additional incentives. Our results apply in many settings like adoption of new products, project selection, and group formation, where a central authority can direct agents towards a strategy but agents may defect if they have better alternatives. We show that for any given instance, we can either compute a high quality approximate equilibrium or a near-optimal solution that can be stabilized by providing small payments to some players. We then generalize our model to encompass situations where player relationships may exhibit complementarities and present an algorithm to compute an Approximate Equilibrium whose stability factor is linear in the degree of complementarity. Our results imply that a little influence is necessary in order to ensure that selfish players coordinate and form socially efficient solutions.Comment: A preliminary version of this work will appear in AAAI-14: Twenty-Eighth Conference on Artificial Intelligenc

A Tale of Markets and Jungles in a Simple Model of Growth

Institutions determine prospects for economic growth and development. This paper collapses potentially complex interactions of different institutions into a simple condition on the primitives that determines whether a society supports spot markets or not. In a dynamic model of an agrarian economy agents are heterogeneous in land holdings, skill, and food endowments. Food holdings serve as a proxy for agents' power to expropriate. The main point of interest is whether land is assigned to the skilled or to the powerful, i.e.\ by coalitional expropriation or by markets. The model finds two different types of limit behavior: a sequence of stable markets and a limit cycle where markets and expropriation alternate. More equal first period endowment distributions facilitate sustainable markets that, in turn, enhance economic efficiency and decrease macroeconomic fluctuations.Expropriation, inequality, institutions, growth, volatility