Repeated congestion games with bounded rationality
We consider a repeated congestion game with imperfect monitoring. At each stage, each player chooses to use some facilities and pays a cost that increases with the congestion. Two versions of the model are examined: a public monitoring setting where agents observe the cost of each available facility, and a private monitoring one where players observe only the cost of the facilities they use. A partial folk theorem holds: a Pareto-optimal outcome may result from selfish behavior and be sustained by a belief-free equilibrium of the repeated game. We prove this result assuming that players use strategies of bounded complexity and we estimate the strategic complexity needed to achieve efficiency. It is shown that, under some conditions on the number of players and the structure of the game, this complexity is very small even under private monitoring. The case of network routing games is examined in detail.
(This abstract was borrowed from another version of this item.)
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 41 (2012)
Issue (Month): 3 (August)
|Contact details of provider:|| Web page: http://www.springer.com|
|Order Information:||Web: http://www.springer.com/economics/economic+theory/journal/182/PS2|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jeffrey C. Ely & Johannes Horner & Wojciech Olszewski, 2003.
"Belief-free Equilibria in Repeated Games,"
Levine's Working Paper Archive
666156000000000367, David K. Levine.
- Holzman, Ron & Law-yone (Lev-tov), Nissan, 2003. "Network structure and strong equilibrium in route selection games," Mathematical Social Sciences, Elsevier, vol. 46(2), pages 193-205, October.
- Michihiro Kandori, 1992. "Social Norms and Community Enforcement," Review of Economic Studies, Oxford University Press, vol. 59(1), pages 63-80.
- Drew Fudenberg & David K. Levine & Eric Maskin, 1994.
"The Folk Theorem with Imperfect Public Information,"
Levine's Working Paper Archive
2058, David K. Levine.
- Fudenberg, Drew & Levine, David I & Maskin, Eric, 1994. "The Folk Theorem with Imperfect Public Information," Econometrica, Econometric Society, vol. 62(5), pages 997-1039, September.
- Fudenberg, D. & Levine, D.K. & Maskin, E., 1989. "The Folk Theorem With Inperfect Public Information," Working papers 523, Massachusetts Institute of Technology (MIT), Department of Economics.
- Drew Fudenberg & David K. Levine & Eric Maskin, 1994. "The Folk Theorem with Imperfect Public Information," Levine's Working Paper Archive 394, David K. Levine.
- Kalai, Ehud & Stanford, William, 1988.
"Finite Rationality and Interpersonal Complexity in Repeated Games,"
Econometric Society, vol. 56(2), pages 397-410, March.
- Ehud Kalai & William Stanford, 1986. "Finite Rationality and Interpersonal Complexity in Repeated Games," Discussion Papers 679, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Fudenberg, Drew & Levine, David K., 1991.
"An approximate folk theorem with imperfect private information,"
Journal of Economic Theory,
Elsevier, vol. 54(1), pages 26-47, June.
- D. Fudenberg & D. K. Levine, 1991. "An Approximate Folk Theorem with Imperfect Private Information," Levine's Working Paper Archive 607, David K. Levine.
- Fudenberg, D. & Levine, D.K., 1989. "An Approximative Folk Theorem With Imperfect Private Information," Working papers 525, Massachusetts Institute of Technology (MIT), Department of Economics.
- James W. Friedman, 1971. "A Non-cooperative Equilibrium for Supergames," Review of Economic Studies, Oxford University Press, vol. 38(1), pages 1-12.
- 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.
- Mailath, George J. & Samuelson, Larry, 2006. "Repeated Games and Reputations: Long-Run Relationships," OUP Catalogue, Oxford University Press, number 9780195300796.
- Holzman, Ron & Law-Yone, Nissan, 1997. "Strong Equilibrium in Congestion Games," Games and Economic Behavior, Elsevier, vol. 21(1-2), pages 85-101, October.
- Monderer, Dov & Shapley, Lloyd S., 1996. "Potential Games," Games and Economic Behavior, Elsevier, vol. 14(1), pages 124-143, May.
When requesting a correction, please mention this item's handle: RePEc:spr:jogath:v:41:y:2012:i:3:p:651-669. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla)or (Rebekah McClure)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.