Worst-case equilibria

  • Authors:
  • Elias Koutsoupias;Christos Papadimitriou

  • Affiliations:
  • University of Athens, Greece;University of California, Berkeley, United States

  • Venue:
  • Computer Science Review
  • Year:
  • 2009

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Abstract

In a system where noncooperative agents share a common resource, we propose the price of anarchy, which is the ratio between the worst possible Nash equilibrium and the social optimum, as a measure of the effectiveness of the system. Deriving upper and lower bounds for this ratio in a model where several agents share a very simple network leads to some interesting mathematics, results, and open problems.