Price of Anarchy

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The Price of Anarchy(PoA) in game theory is a measure of how well people do when they play a selfish (Nash equilibrium) strategy as opposed to according to a central authority that might result in a social optimum. It can be defined as, the ratio of the social optimum welfare to the welfare of the worst Nash equilibrium. Equally, it can be understood as a measurement of how the efficiency of the overall system degrades due to the selfish behavior of its agents.

2017-03-07T11:04:07+00:00