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Congestion models and weighted Bayesian potential games

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  • Facchini, G.
  • Megen, F.J.C. van

    (Tilburg University)

  • Borm, P.E.M.

    (Tilburg University)

  • Tijs, S.H.

    (Tilburg University)

Abstract

Games associated to congestion situations a la Rosenthal (1973) have pure Nash equilibria. This result implicitly relies on the existence of a potential function. In this paper we will provide a characterization of potential games in terms of coordination games and dummy games. Secondly, we extend Rosenthal's congestion model to an incomplete information setting, and show that the related Bayesian games are potential games and therefore have pure Bayesian equilibria.

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Bibliographic Info

Paper provided by Tilburg University in its series Open Access publications from Tilburg University with number urn:nbn:nl:ui:12-74105.

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Date of creation: 1997
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Publication status: Published in Theory and Decision (1997) v.42, p.193-206
Handle: RePEc:ner:tilbur:urn:nbn:nl:ui:12-74105

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Web page: http://www.tilburguniversity.edu/

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References

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  1. Carlsson, Hans & van Damme, Eric, 1993. "Global Games and Equilibrium Selection," Econometrica, Econometric Society, vol. 61(5), pages 989-1018, September.
  2. Slade, Margaret E, 1994. "What Does an Oligopoly Maximize?," Journal of Industrial Economics, Wiley Blackwell, vol. 42(1), pages 45-61, March.
  3. John C. Harsanyi & Reinhard Selten, 1988. "A General Theory of Equilibrium Selection in Games," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262582384, December.
  4. Peleg, Bezalel & Potters, Jos A M & Tijs, Stef H, 1996. "Minimality of Consistent Solutions for Strategic Games, in Particular for Potential Games," Economic Theory, Springer, vol. 7(1), pages 81-93, January.
  5. Heumen, R. van & Peleg, B. & Tijs, S.H. & Borm, P.E.M., 1996. "Axiomatic characterizations of solutions for Bayesian games," Open Access publications from Tilburg University urn:nbn:nl:ui:12-72930, Tilburg University.
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Cited by:
  1. Philippe Jehiel & Moritz Meyer-ter-Vehn & Benny Moldovanu, 2008. "Ex-post implementation and preference aggregation via potentials," Economic Theory, Springer, vol. 37(3), pages 469-490, December.
  2. Voorneveld, M., 1996. "Equilibria and Approximate Equilibria in Infinite Potential Games," Discussion Paper 1996-94, Tilburg University, Center for Economic Research.
  3. Voorneveld, M. & Borm, P.E.M. & Megen, F.J.C. van & Tijs, S.H. & Facchini, G., 1999. "Congestion games and potentials reconsidered," Open Access publications from Tilburg University urn:nbn:nl:ui:12-169686, Tilburg University.
  4. Milchtaich, Igal, 2009. "Weighted congestion games with separable preferences," Games and Economic Behavior, Elsevier, vol. 67(2), pages 750-757, November.
  5. Mallozzi, L. & Pusillo, L. & Tijs, S.H., 2006. "Approximate Equilibria for Bayesian Multi-Criteria Games," Discussion Paper 2006-121, Tilburg University, Center for Economic Research.
  6. Fioravante Patrone & Lucia Pusillo & Stef Tijs, 2007. "Multicriteria games and potentials," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer, vol. 15(1), pages 138-145, July.
  7. Heumen, R. van & Peleg, B. & Tijs, S.H. & Borm, P.E.M., 1996. "Axiomatic characterizations of solutions for Bayesian games," Open Access publications from Tilburg University urn:nbn:nl:ui:12-72930, Tilburg University.
  8. Branzei, Rodica & Mallozzi, Lina & Tijs, Stef, 2003. "Supermodular games and potential games," Journal of Mathematical Economics, Elsevier, vol. 39(1-2), pages 39-49, February.
  9. Brânzei, R. & Mallozzi, L. & Tijs, S.H., 2001. "Supermodular Games and Potential Games," Discussion Paper 2001-97, Tilburg University, Center for Economic Research.
  10. Hannu Salonen, 2013. "Utilitarian Preferences and Potential Games," Discussion Papers 85, Aboa Centre for Economics.
  11. Milchtaich, Igal, 2004. "Social optimality and cooperation in nonatomic congestion games," Journal of Economic Theory, Elsevier, vol. 114(1), pages 56-87, January.

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