The Power Allocation Game on A Network: A Paradox

02/11/2018

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by   Yuke Li, et al.

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The well-known Braess paradox in congestion games states that adding an additional road to a transportation network may increase the total travel time, and consequently decrease the overall efficiency. Motivated by this, this paper presents a paradox in a similar spirit emerging from another distributed resource allocation game on networks, namely the power allocation game between countries developed in allocation. The paradox is that by having additional friends may actually decrease a country's total welfare in equilibrium. Conditions for this paradox to occur as well as some price of anarchy results are also derived.