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Selfishness Need Not Be Bad

Author

Listed:
  • Zijun Wu

    (Institute for Applied Optimization, School of Artificial Intelligence and Bigdata, Hefei University, 230091 Hefei, P. R. China;)

  • Rolf H. Möhring

    (Institute for Applied Optimization, School of Artificial Intelligence and Bigdata, Hefei University, 230091 Hefei, P. R. China; Institute of Mathematics, Technische Universität Berlin, 10623 Berlin, Germany;)

  • Yanyan Chen

    (Beijing Key Lab of Traffic Engineering, Beijing University of Technology, 100124 Beijing, P. R. China;)

  • Dachuan Xu

    (Department of Operations Research and Information Engineering, Beijing University of Technology, 100124 Beijing, P. R. China)

Abstract

We investigate the price of anarchy (PoA) in nonatomic congestion games when the total demand T gets very large. First results in this direction have recently been obtained by Colini-Baldeschi et al. (2016, 2017, 2020) for routing games and show that the PoA converges to one when the growth of the total demand T satisfies certain regularity conditions. We extend their results by developing a new framework for the limit analysis of the PoA that offers strong techniques such as the limit of games and applies to arbitrary growth patterns of T . We show that the PoA converges to one in the limit game regardless of the type of growth of T for a large class of cost functions that contains all polynomials and all regularly varying functions. For routing games with Bureau of Public Road (BPR) cost functions, we show in addition that socially optimal strategy profiles converge to equilibria in the limit game and that the PoA converges to one at a power law with exponent β , where β > 0 is the degree of the BPR functions. However, the precise convergence rate depends crucially on the the growth of T , which shows that a conjecture proposed by O’Hare et al. (2016) need not hold.

Suggested Citation

  • Zijun Wu & Rolf H. Möhring & Yanyan Chen & Dachuan Xu, 2021. "Selfishness Need Not Be Bad," Operations Research, INFORMS, vol. 69(2), pages 410-435, March.
    • Handle: RePEc:inm:oropre:v:69:y:2021:i:2:p:410-435
    DOI: 10.1287/opre.2020.2036
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    References listed on IDEAS

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    1. Roughgarden, Tim & Tardos, Eva, 2004. "Bounding the inefficiency of equilibria in nonatomic congestion games," Games and Economic Behavior, Elsevier, vol. 47(2), pages 389-403, May.
    2. Olaf Jahn & Rolf H. Möhring & Andreas S. Schulz & Nicolás E. Stier-Moses, 2005. "System-Optimal Routing of Traffic Flows with User Constraints in Networks with Congestion," Operations Research, INFORMS, vol. 53(4), pages 600-616, August.
    3. Riccardo Colini-Baldeschi & Roberto Cominetti & Panayotis Mertikopoulos & Marco Scarsini, 2020. "When Is Selfish Routing Bad? The Price of Anarchy in Light and Heavy Traffic," Operations Research, INFORMS, vol. 68(2), pages 411-434, March.
    4. O'Hare, Steven J. & Connors, Richard D. & Watling, David P., 2016. "Mechanisms that govern how the Price of Anarchy varies with travel demand," Transportation Research Part B: Methodological, Elsevier, vol. 84(C), pages 55-80.
    5. Georgia Perakis, 2007. "The “Price of Anarchy” Under Nonlinear and Asymmetric Costs," Mathematics of Operations Research, INFORMS, vol. 32(3), pages 614-628, August.
    6. José R. Correa & Andreas S. Schulz & Nicolás E. Stier-Moses, 2004. "Selfish Routing in Capacitated Networks," Mathematics of Operations Research, INFORMS, vol. 29(4), pages 961-976, November.
    7. Smith, M. J., 1979. "The existence, uniqueness and stability of traffic equilibria," Transportation Research Part B: Methodological, Elsevier, vol. 13(4), pages 295-304, December.
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