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Evolutionary Games in Natural, Social, and Virtual Worlds$
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Daniel Friedman and Barry Sinervo

Print publication date: 2016

Print ISBN-13: 9780199981151

Published to Oxford Scholarship Online: August 2016

DOI: 10.1093/acprof:oso/9780199981151.001.0001

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Traffic Games

Traffic Games

Chapter:
(p.290) 11 Traffic Games
Source:
Evolutionary Games in Natural, Social, and Virtual Worlds
Author(s):

Daniel Friedman

Barry Sinervo

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780199981151.003.0011

Chapter 11 analyzes congestion effects in road networks and in packet-switched communication networks. It focuses on Wardrop equilibrium, the appropriate version of Nash equilibrium for such networks. The analysis begins with the Braess paradox, where improving a link may actually increase overall congestion for a given set of drivers. The analysis includes results bounding the degree of inefficiency in equilibrium (“the price of anarchy”). One possible remedy is a Pigovian tax that can restore efficiency, even in the presence of a double marginalization-like problem arising from competition amongst profit-maximizing link-owners. The analysis exploits analogies to electrical circuits, particularly simple circuits that are Thevenin equivalent to more complex circuits.

Keywords:   Wardrop equilibrium, potential games, Braess paradox, price of anarchy, Pigovian taxes, double marginalization, electrical circuits, Thevenin equivalent

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