Altruism and Its Impact on the Price of Anarchy

Author:

Chen Po-An1,Keijzer Bart De2,Kempe David3,Schäfer Guido4

Affiliation:

1. National Chiao Tung University, Taiwan

2. CWI Amsterdam, The Netherlands

3. University of Southern California, USA

4. CWI Amsterdam and VU University Amsterdam, The Netherlands

Abstract

We study the inefficiency of equilibria for congestion games when players are (partially) altruistic. We model altruistic behavior by assuming that player i 's perceived cost is a convex combination of α i times his direct cost and α i times the social cost. Tuning the parameters α i allows smooth interpolation between purely selfish and purely altruistic behavior. Within this framework, we study primarily altruistic extensions of (atomic and nonatomic) congestion games, but also obtain some results on fair cost-sharing games and valid utility games. We derive (tight) bounds on the price of anarchy of these games for several solution concepts. Thereto, we suitably adapt the smoothness notion introduced by Roughgarden and show that it captures the essential properties to determine the robust price of anarchy of these games. Our bounds show that for atomic congestion games and cost-sharing games, the robust price of anarchy gets worse with increasing altruism, while for valid utility games, it remains constant and is not affected by altruism. However, the increase in the price of anarchy is not a universal phenomenon: For general nonatomic congestion games with uniform altruism, the price of anarchy improves with increasing altruism. For atomic and nonatomic symmetric singleton congestion games, we derive bounds on the pure price of anarchy that improve as the average level of altruism increases. (For atomic games, we only derive such bounds when cost functions are linear.) Since the bounds are also strictly lower than the robust price of anarchy, these games exhibit natural examples in which pure Nash equilibria are more efficient than more permissive notions of equilibrium.

Publisher

Association for Computing Machinery (ACM)

Subject

Computational Mathematics,Marketing,Economics and Econometrics,Statistics and Probability,Computer Science (miscellaneous)

Reference66 articles.

1. Pure Nash Equilibria in Player-Specific and Weighted Congestion Games

2. E. Anshelevich O. Bhardwaj and M. Hoefer. 2012. Friendship altruism and reward sharing in stable matching and contribution games. http://arxiv.org/pdf/1204.5780.pdf. E. Anshelevich O. Bhardwaj and M. Hoefer. 2012. Friendship altruism and reward sharing in stable matching and contribution games. http://arxiv.org/pdf/1204.5780.pdf.

3. The Price of Stability for Network Design with Fair Cost Allocation

4. Local Search Heuristics for k-Median and Facility Location Problems

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