Efficient Equilibria in a Public Goods Game Conference Paper uri icon

abstract

  • The" best-shot" public goods game is a network game, defined on a social network. As in most strategic games, it contains a structured tradeoff between stability and efficiency. The present study considers a multi-agent system, in which each agent represents a player in the" best-shot" game. It is demonstrated that any Pure-strategy Nash Equilibrium (PNE) of the" best-shot" game is Pareto efficient and that best-response dynamics converge into a PNE within a linear number of steps. It is also shown that the game is a potential game. The potential function can be utilized for the search of PNEs with certain social properties. In order to improve efficiency beyond the limited set of stable states, a mechanism of side payments is proposed. We prove that by using side payments an outcome that maximizes social welfare can be stabilized. A distributed protocol based on asymmetric distributed …

publication date

  • December 6, 2015