Abstract
We introduce a measure for the level of stability against coalitional deviations, called stability scores, which generalizes widely used notions of stability in non-cooperative games. We use the proposed measure to compare various Nash equilibria in congestion games, and to quantify the effect of game parameters on coalitional stability. For our main results, we apply stability scores to analyze and compare the Generalized Second Price (GSP) and Vickrey-Clarke-Groves (VCG) ad auctions. We show that while a central result of the ad auctions literature is that the GSP and VCG auctions implement the same outcome in one of the equilibria of GSP, the GSP outcome is far more stable. Finally, a modified version of VCG is introduced, which is group strategy-proof, and thereby achieves the highest possible stability score.
Original language | English |
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Pages | 160-167 |
Number of pages | 8 |
State | Published - 2012 |
Externally published | Yes |
Event | 11th International Conference on Autonomous Agents and Multiagent Systems 2012: Innovative Applications Track, AAMAS 2012 - Valencia, Spain Duration: 4 Jun 2012 → 8 Jun 2012 |
Conference
Conference | 11th International Conference on Autonomous Agents and Multiagent Systems 2012: Innovative Applications Track, AAMAS 2012 |
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Country/Territory | Spain |
City | Valencia |
Period | 4/06/12 → 8/06/12 |
Keywords
- Auctions
- Game theory
- Mechanism design
- Solution concepts