Profit sharing and efficiency in utility games

Conference Paper

We study utility games (Vetta, FOCS 2002) where a set of players join teams to produce social utility, and receive individual utility in the form of payments in return. These games have many natural applications in competitive settings such as labor markets, crowdsourcing, etc. The efficiency of such a game depends on the profit sharing mechanism -The rule that maps utility produced by the players to their individual payments. We study three natural and widely used profit sharing mechanisms - egalitarian or equal sharing, marginal gain or value addition when a player joins, and marginal loss or value depletion when a player leaves. For these settings, we give tight bounds on the price of anarchy, thereby allowing comparison between these popular mechanisms from a (worst case) social welfare perspective.

Full Text

Duke Authors

Cited Authors

  • Gollapudi, S; Kollias, K; Panigrahi, D; Pliatsika, V

Published Date

  • September 1, 2017

Published In

Volume / Issue

  • 87 /

International Standard Serial Number (ISSN)

  • 1868-8969

International Standard Book Number 13 (ISBN-13)

  • 9783959770491

Digital Object Identifier (DOI)

  • 10.4230/LIPIcs.ESA.2017.43

Citation Source

  • Scopus