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ABSTRACT
The price of anarchy, a measure of the inefficiency of selfish behavior, has been successfully analyzed in a diverse array of models over the past five years. The overwhelming majority of this work has studied optimization problems that sought an optimal way to allocate a fixed demand to resources whose performance degrades with increasing congestion. While fundamental, such problems overlook a crucial feature of many applications: the intrinsic coupling of the quality or cost of a resource and the demand for that resource. This coupling motivates allowing demand to vary with congestion, which in turn can lead to "the tragedy of the commons"---severe inefficiency caused by the overconsumption of a shared resource.Allowing the demand for resources to vary with their congestion illuminates a second issue with existing studies of the price of anarchy: the standard additive method of aggregating the costs of different resources in a player's strategy is inappropriate for some important applications, including many of those with variable demand. For example, in networking applications a key performance metric is the achievable throughput along a path, which is controlled by its bottleneck (most congested) edge. This disconnect motivates consideration of nonlinear cost aggregation functions, such as the lp norms.In this paper, we initiate the study of the price of anarchy with variable demand and with broad classes of nonlinear aggregation functions. We focus on selfish routing in single- and multicommodity networks, and on the lp norms for 1 ≤ p ≤ ∞; our main results are as follows.• For a natural "prize-collecting" objective function, the price of anarchy in multicommodity networks with variable demand is no larger than that in fixed-demand networks. Thus the inefficiency arising from the tragedy of the commons is no more severe than that from routing inefficiencies.• Using the lp norm with 1 < p < ∞ as a cost aggregation function can dramatically increase the price of anarchy in multicommodity networks (relative to additive aggregation), but causes no such additional inefficiency in single-commodity networks.• Using the l∞ norms as a cost aggregation function can dramatically increase the price of anarchy, even in single-commodity networks. If attention is restricted to equilibria with additional structure, however---structure that is ensured by distributed shortest-path routing protocols---then using the l∞ norm does not increase the price of anarchy relative to additive aggregation.
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