The Curse of Ties in Congestion Games with Limited Lookahead
Carla Groenland, Guido Sch\"afer

TL;DR
This paper explores how limited lookahead in congestion games affects outcome stability and efficiency, revealing that increased lookahead can sometimes cause instability due to player indifferences, with implications for game design.
Contribution
It introduces a new framework for modeling limited lookahead in congestion games and analyzes its effects on stability and inefficiency, highlighting the role of ties and game type.
Findings
Full lookahead can cause instability in simple congestion games due to ties.
In generic games without ties, all outcomes are stable regardless of lookahead.
In some cost-sharing games, no lookahead yields stable outcomes, but full lookahead can improve efficiency.
Abstract
We introduce a novel framework to model limited lookahead in congestion games. Intuitively, the players enter the game sequentially and choose an optimal action under the assumption that the subsequent players play subgame-perfectly. Our model naturally interpolates between outcomes of greedy best-response () and subgame-perfect outcomes (, the number of players). We study the impact of limited lookahead (parameterized by ) on the stability and inefficiency of the resulting outcomes. As our results reveal, increased lookahead does not necessarily lead to better outcomes; in fact, its effect crucially depends on the existence of ties and the type of game under consideration. More specifically, already for very simple network congestion games we show that subgame-perfect outcomes (full lookahead) can be unstable, whereas greedy best-response outcomes (no lookahead)…
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Taxonomy
TopicsGame Theory and Applications · Experimental Behavioral Economics Studies · Game Theory and Voting Systems
