Pure Nash Equilibrium and Coordination of Players in Ride Sharing Games (1604.00710v1)

Abstract: In this study, we formulate positive and negative externalities caused by changes in the supply of shared vehicles as ride sharing games. The study aims to understand the price of anarchy (PoA) and its improvement via a coordination technique in ride sharing games. A critical question is whether ride sharing games exhibit a pure Nash equilibrium (pNE) since the PoA bound assumes it. Our result shows a sufficient condition for a ride sharing game to have a finite improvement property and a pNE similar to potential games. This is the first step to analyze PoA bound and its improvement by coordination in ride sharing games. We also show an example of coordinating players in ride sharing games using signaling and evaluate the improvement in the PoA.