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Network Creation Games with Disconnected Equilibria

Published: 17 December 2008 Publication History

Abstract

In this paper we extend a popular non-cooperative networkcreation game (NCG) [11] to allow for disconnected equilibriumnetworks. There are n players, each is a vertex in a graph, and astrategy is a subset of players to build edges to. For each edge aplayer must pay a cost ±, and the individual cost for aplayer represents a trade-off between edge costs and shortest pathlengths to all other players. We extend the model to a penalizedgame (PCG), for which we reduce the penalty for a pair ofdisconnected players to a finite value ². We prove that thePCG is not a potential game, but pure Nash equilibria always exist,and pure strong equilibria exist in many cases. We provide tightconditions under which disconnected (strong) Nash equilibria canevolve. Components of these equilibria must be (strong) Nashequilibria of a smaller NCG. But in contrast to the NCG, for thevast majority of parameter values no tree is a stable component.Finally, we show that the price of anarchy is ˜(n), severalorders of magnitude larger than in the NCG. Perhaps surprisingly,the price of anarchy for strong equilibria increases only to atmost 4.

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cover image Guide Proceedings
WINE '08: Proceedings of the 4th International Workshop on Internet and Network Economics
December 2008
731 pages
ISBN:9783540921844
  • Editors:
  • Christos Papadimitriou,
  • Shuzhong Zhang

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Springer-Verlag

Berlin, Heidelberg

Publication History

Published: 17 December 2008

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  • (2017)On Strong Equilibria and Improvement Dynamics in Network Creation GamesWeb and Internet Economics10.1007/978-3-319-71924-5_12(161-176)Online publication date: 17-Dec-2017
  • (2016)Celebrity gamesTheoretical Computer Science10.1016/j.tcs.2016.08.005648:C(56-71)Online publication date: 4-Oct-2016
  • (2016)Network Formation for Asymmetric Players and Bilateral ContractingTheory of Computing Systems10.1007/s00224-015-9640-659:3(397-415)Online publication date: 1-Oct-2016
  • (2015)A Bounded Budget Network Creation GameACM Transactions on Algorithms10.1145/270161511:4(1-25)Online publication date: 13-Apr-2015
  • (2013)On dynamics in selfish network creationProceedings of the twenty-fifth annual ACM symposium on Parallelism in algorithms and architectures10.1145/2486159.2486185(83-92)Online publication date: 23-Jul-2013
  • (2012)Contribution Games in NetworksAlgorithmica10.5555/3226239.322636063:1-2(51-90)Online publication date: 1-Jun-2012

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