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Strong equilibrium in network congestion games: increasing versus decreasing costs

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  • Ron Holzman

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  • Dov Monderer

    ()

Abstract

A network congestion game is played on a directed, two-terminal network. Every player chooses a route from his origin to his destination. The cost of a route is the sum of the costs of the arcs on it. The arc cost is a function of the number of players who use it. Rosenthal proved that such a game always has a Nash equilibrium in pure strategies. Here we pursue a systematic study of the classes of networks for which a strong equilibrium is guaranteed to exist, under two opposite monotonicity assumptions on the arc cost functions. Our main results are: (a) If costs are increasing, strong equilibrium is guaranteed on extension-parallel networks, regardless of whether the players’ origins and destinations are the same or may differ. (b) If costs are decreasing, and the players have the same origin but possibly different destinations, strong equilibrium is guaranteed on series-parallel networks. (c) If costs are decreasing, and both origins and destinations may differ, strong equilibrium is guaranteed on multiextension-parallel networks. In each case, the network condition is not only sufficient but also necessary in order to guarantee strong equilibrium. These results extend and improve earlier ones by Holzman and Law-Yone in the increasing case, and by Epstein et al. in the decreasing case. Copyright Springer-Verlag Berlin Heidelberg 2015

Suggested Citation

  • Ron Holzman & Dov Monderer, 2015. "Strong equilibrium in network congestion games: increasing versus decreasing costs," International Journal of Game Theory, Springer;Game Theory Society, vol. 44(3), pages 647-666, August.
  • Handle: RePEc:spr:jogath:v:44:y:2015:i:3:p:647-666
    DOI: 10.1007/s00182-014-0448-4
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    File URL: http://hdl.handle.net/10.1007/s00182-014-0448-4
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    References listed on IDEAS

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    1. Epstein, Amir & Feldman, Michal & Mansour, Yishay, 2009. "Strong equilibrium in cost sharing connection games," Games and Economic Behavior, Elsevier, vol. 67(1), pages 51-68, September.
    2. Holzman, Ron & Law-Yone, Nissan, 1997. "Strong Equilibrium in Congestion Games," Games and Economic Behavior, Elsevier, vol. 21(1-2), pages 85-101, October.
    3. 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.
    4. Milchtaich, Igal, 2006. "Network topology and the efficiency of equilibrium," Games and Economic Behavior, Elsevier, vol. 57(2), pages 321-346, November.
    5. Monderer, Dov & Shapley, Lloyd S., 1996. "Potential Games," Games and Economic Behavior, Elsevier, vol. 14(1), pages 124-143, May.
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    Citations

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    Cited by:

    1. Kukushkin, Nikolai S., 2017. "Strong Nash equilibrium in games with common and complementary local utilities," Journal of Mathematical Economics, Elsevier, vol. 68(C), pages 1-12.

    More about this item

    Keywords

    Network; Congestion game; Strong equilibrium; Cost monotonicity; Series-parallel; Directed graph; C72; R41;

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

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