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The price of anarchy of serial, average and incremental cost sharing
Authors:Hervé Moulin
Institution:(1) Department of Economics, Rice University, MS 22, P.O. Box 1892, Houston, TX 77251-1892, USA
Abstract:We compute the price of anarchy (PoA) of three familiar demand games, i.e., the smallest ratio of the equilibrium to efficient surplus, over all convex preferences quasi-linear in money. For any convex cost, the PoA is at least $$\frac{1}{n}$$ in the average and serial games, where n is the number of users. It is zero in the incremental game for piecewise linear cost functions. With quadratic costs, the PoA of the serial game is $$\theta (\frac{1}{\log n})$$ , and $$\theta (\frac{1}{n})$$ for the average and incremental games. This generalizes if the marginal cost is convex or concave, and its elasticity is bounded.
Keywords:Price of anarchy  Cost sharing  Average cost  Serial cost  Incremental cost
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