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Register a new userNetflix Games: Local Public Goods with Capacity Constraints
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This paper considers incentives to provide goods that are partially excludable along social links. Individuals face a capacity constraint in that, conditional upon providing, they may nominate only a subset of neighbours as co-beneficiaries. Our model has two typically incompatible ingredients: (i) a graphical game (individuals decide how much of the good to provide), and (ii) graph formation (individuals decide which subset of neighbours to nominate as co-beneficiaries). For any capacity constraints and any graph, we show the existence of specialised pure strategy Nash equilibria - those in which some individuals (the Drivers, D) contribute while the remaining individuals (the Passengers, P) free ride. The proof is constructive and corresponds to showing, for a given capacity, the existence of a new kind of spanning bipartite subgraph, a DP-subgraph, with partite sets D and P. We consider how the number of Drivers in equilibrium changes as the capacity constraints are relaxed and show a weak monotonicity result. Finally, we introduce dynamics and show that only specialised equilibria are stable against individuals unilaterally changing their provision level.
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This study examines the mechanism design problem for public-good provision in a large economy with $n$ independent agents. We propose a class of dominant-strategy incentive compatible (DSIC) and ex post individual rational (EPIR) mechanisms which we call the adjusted mean-thresholding (AMT) mechanisms. We show that when the cost of provision grows slower than the $sqrt{n}$ rate, the AMT mechanisms are both asymptotically ex ante budget balanced (AEABB) and asymptotically efficient (AE). When the cost grows faster than the $sqrt{n}$ rate, in contrast, we show that any DSIC, EPIR, and AEABB mechanism must have provision probability converging to zero and hence cannot be AE. Lastly, the AMT mechanisms are more informationally robust when compared to, for example, the second-best mechanism. This is because the construction of AMT mechanisms depends only on the first moments of the valuation distributions.
Public goods games in undirected networks are generally known to have pure Nash equilibria, which are easy to find. In contrast, we prove that, in directed networks, a broad range of public goods games have intractable equilibrium problems: The existence of pure Nash equilibria is NP-hard to decide, and mixed Nash equilibria are PPAD-hard to find. We define general utility public goods games, and prove a complexity dichotomy result for finding pure equilibria, and a PPAD-completeness proof for mixed Nash equilibria. Even in the divisible goods variant of the problem, where existence is easy to prove, finding the equilibrium is PPAD-complete. Finally, when the treewidth of the directed network is appropriately bounded, we prove that polynomial-time algorithms are possible.
Productive societies feature high levels of cooperation and strong connections between individuals. Public Goods Games (PGGs) are frequently used to study the development of social connections and cooperative behavior in model societies. In such games, contributions to the public good are made only by cooperators, while all players, including defectors, can reap public goods benefits. Classic results of game theory show that mutual defection, as opposed to cooperation, is the Nash Equilibrium of PGGs in well-mixed populations, where each player interacts with all others. In this paper, we explore the coevolutionary dynamics of a low information public goods game on a network without spatial constraints in which players adapt to their environment in order to increase individual payoffs. Players adapt by changing their strategies, either to cooperate or to defect, and by altering their social connections. We find that even if players do not know other players strategies and connectivity, cooperation can arise and persist despite large short-term fluctuations.
Cancer cells obtain mutations which rely on the production of diffusible growth factors to confer a fitness benefit. These mutations can be considered cooperative, and studied as public goods games within the framework of evolutionary game theory. The population structure, benefit function and update rule all influence the evolutionary success of cooperators. We model the evolution of cooperation in epithelial cells using the Voronoi tessellation model. Unlike traditional evolutionary graph theory, this allows us to implement global updating, for which birth and death events are spatially decoupled. We compare, for a sigmoid benefit function, the conditions for cooperation to be favoured and/or beneficial for well mixed and structured populations. We find that when population structure is combined with global updating, cooperation is more successful than if there were local updating or the population were well-mixed. Interestingly, the qualitative behaviour for the well-mixed population and the Voronoi tessellation model is remarkably similar, but the latter case requires significantly lower incentives to ensure cooperation.
In this Brief Report we study the evolutionary dynamics of the Public Goods Game in a population of mobile agents embedded in a 2-dimensional space. In this framework, the backbone of interactions between agents changes in time, allowing us to study the impact that mobility has on the emergence of cooperation in structured populations. We compare our results with a static case in which agents interact on top of a Random Geometric Graph. Our results point out that a low degree of mobility enhances the onset of cooperation in the system while a moderate velocity favors the fixation of the full-cooperative state.
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