Price of Anarchy

Home/Price of Anarchy

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.