Strong price of anarchy

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Abstract

A strong equilibrium (Aumann 1959) is a pure Nash equilibrium which is resilient to deviations by coalitions. We define the strong price of anarchy to be the ratio of the worst case strong equilibrium to the social optimum. In contrast to the traditional price of anarchy, which quantifies the loss incurred due to both selfishness and lack of coordination, the strong price of anarchy isolates the loss originated from selfishness from that obtained due to lack of coordination. We study the strong price of anarchy in two settings, one of job scheduling and the other of network creation. In the job scheduling game we show that for unrelated machines the strong price of anarchy can be bounded as a function of the number of machines and the size of the coalition. For the network creation game we show that the strong price of anarchy is at most 2. In both cases we show that a strong equilibrium always exists, except for a well defined subset of network creation games.

Original languageEnglish
Title of host publicationProceedings of the 18th Annual ACM-SIAM Symposium on Discrete Algorithms, SODA 2007
PublisherAssociation for Computing Machinery
Pages189-198
Number of pages10
ISBN (Electronic)9780898716245
StatePublished - 2007
Event18th Annual ACM-SIAM Symposium on Discrete Algorithms, SODA 2007 - New Orleans, United States
Duration: 7 Jan 20079 Jan 2007

Publication series

NameProceedings of the Annual ACM-SIAM Symposium on Discrete Algorithms
Volume07-09-January-2007

Conference

Conference18th Annual ACM-SIAM Symposium on Discrete Algorithms, SODA 2007
Country/TerritoryUnited States
CityNew Orleans
Period7/01/079/01/07

Funding

FundersFunder number
International Business Machines Corporation
United States-Israel Binational Science Foundation
Israel Science Foundation

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