An Evolutionary Approach to Congestion
Using techniques from evolutionary game theory, we analyze potential games with continuous player sets, a class of games which includes a general model of network congestion as a special case. We concisely characterize both the complete set of Nash equilibria and the set of equilibria which are robust against small disturbances of aggregate behavior. We provide a strong evolutionary justification of why equilibria must arise. We characterize situations in which stable equilibria are socially efficient, and show that in such cases, evolution always increases aggregate efficiency. Applying these results, we construct a parameterized class of congestion tolls under which evolution yields socially optimal play. Finally, we characterize potential games with continuous player sets by establishing that a generalization of these games is precisely the limiting version of finite player potential games (Monderer and Shapley (1996)) which satisfy an anonymity condition.
|Date of creation:||Apr 1997|
|Date of revision:|
|Contact details of provider:|| Postal: Center for Mathematical Studies in Economics and Management Science, Northwestern University, 580 Jacobs Center, 2001 Sheridan Road, Evanston, IL 60208-2014|
Web page: http://www.kellogg.northwestern.edu/research/math/
More information through EDIRC
|Order Information:|| Email: |
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.:
- Itzhak Gilboa & Akihiko Matsui, 1991.
"Social Stability and Equilibrium,"
- Gaunersdorfer Andrea & Hofbauer Josef, 1995.
"Fictitious Play, Shapley Polygons, and the Replicator Equation,"
Games and Economic Behavior,
Elsevier, vol. 11(2), pages 279-303, November.
- A. Gaunersdorfer & J. Hofbauer, 2010. "Fictitious Play, Shapley Polygons and the Replicator Equation," Levine's Working Paper Archive 438, David K. Levine.
- Jorgen W. Weibull, 1997. "Evolutionary Game Theory," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262731215.
- Vickrey, William S, 1969. "Congestion Theory and Transport Investment," American Economic Review, American Economic Association, vol. 59(2), pages 251-60, May.
- Richard Arnott & Kenneth Small, 1993. "The Economics Of Traffic Congestion," Boston College Working Papers in Economics 256, Boston College Department of Economics.
- Friedman, Daniel, 1991. "Evolutionary Games in Economics," Econometrica, Econometric Society, vol. 59(3), pages 637-66, May.
- Binmore, K. & Samuelson, L., 1997.
"Evolutionary Drift and Equilibrium Selection,"
9729r, Wisconsin Madison - Social Systems.
- Robert Aumann & Adam Brandenburger, 2014.
"Epistemic Conditions for Nash Equilibrium,"
World Scientific Book Chapters,
in: The Language of Game Theory Putting Epistemics into the Mathematics of Games, chapter 5, pages 113-136
World Scientific Publishing Co. Pte. Ltd..
- Matsui, Akihiko, 1992. "Best response dynamics and socially stable strategies," Journal of Economic Theory, Elsevier, vol. 57(2), pages 343-362, August.
- Friedman, Eric J., 1996. "Dynamics and Rationality in Ordered Externality Games," Games and Economic Behavior, Elsevier, vol. 16(1), pages 65-76, September.
- Jeroen M. Swinkels, 1991.
"Adjustment Dynamics and Rational Play in Games,"
1001, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Barro, Robert J & Romer, Paul M, 1987. "Ski-Lift Pricing, with Applications to Labor and Other," American Economic Review, American Economic Association, vol. 77(5), pages 875-90, December.
- Samuelson, Larry & Zhang, Jianbo, 1992. "Evolutionary stability in asymmetric games," Journal of Economic Theory, Elsevier, vol. 57(2), pages 363-391, August.
- Pas, Eric I. & Principio, Shari L., 1997. "Braess' paradox: Some new insights," Transportation Research Part B: Methodological, Elsevier, vol. 31(3), pages 265-276, June.
- Ritzberger, Klaus & Weibull, Jorgen W, 1995.
"Evolutionary Selection in Normal-Form Games,"
Econometric Society, vol. 63(6), pages 1371-99, November.
- Nachbar, J H, 1990. ""Evolutionary" Selection Dynamics in Games: Convergence and Limit Properties," International Journal of Game Theory, Springer;Game Theory Society, vol. 19(1), pages 59-89.
- Samuelson, L. & Zhang, J., 1990.
"Evolutionary Stability In Symmetric Games,"
90-24, Wisconsin Madison - Social Systems.
- Milgrom, Paul & Roberts, John, 1991. "Adaptive and sophisticated learning in normal form games," Games and Economic Behavior, Elsevier, vol. 3(1), pages 82-100, February.
- Foster, Dean P. & Vohra, Rakesh V., 1997. "Calibrated Learning and Correlated Equilibrium," Games and Economic Behavior, Elsevier, vol. 21(1-2), pages 40-55, 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:nwu:cmsems:1198. 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: (Fran Walker)
If references are entirely missing, you can add them using this form.