, Javier Soria de Diego
, Juan Luis Varona Malumbres
, Joan Verdera
, Vol. 3, 2006, ISBN 978-3-03719-022-7, págs. 1071-1094We survey one area of the emerging field of algorithmic game theory: the use of approximation measures to quantify the inefficiency of game-theoretic equilibria. Potential functions, which enable the application of optimization theory to the study of equilibria, have been a versatile and powerful tool in this area. We use potential functions to bound the inefficiency of equilibria in three diverse, natural classes of games: selfish routing networks, resource allocation games, and Shapley network design games.
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