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arXiv · 1802.03669

The Power Allocation Game on A Network: A Paradox

Yuke Li·A. Stephen Morse
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Abstract

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 \cite{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.

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Yuke Li, A. Stephen Morse. 2018-02-11. The Power Allocation Game on A Network: A Paradox. https://arxiv.org/abs/1802.03669

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