Abstract
We study selfish agents that have a “distorted view” of reality. We introduce a framework of subjective vs. objective reality. This is very useful to model risk averse behavior. Natural quality of service issues can be cast as special cases thereof.
In particular, we study two applicable variants of the price of anarchy paradigm, the subjective price of anarchy where one compares the “optimal” subjective outcome to the outcome that arises from selfish subjective reality agents, and the objective price of anarchy where one compares the optimal objective outcome to that derived by selfish subjective agents.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Ackermann, H., Röglin, H., Vöcking, B.: Pure nash equilibria in player-specific and weighted congestion games. In: Spirakis, P.G., Mavronicolas, M., Kontogiannis, S.C. (eds.) WINE 2006. LNCS, vol. 4286, pp. 50–61. Springer, Heidelberg (2006)
Altman, E., Saunders, A.: Credit risk measurement: Developments over the last 20 years. Journal of Banking & Finance 21, 1721–1742 (1998)
Awerbuch, B., Azar, Y., Richter, Y., Tsur, D.: Tradeoffs in worst-case equilibria. In: Solis-Oba, R., Jansen, K. (eds.) WAOA 2003. LNCS, vol. 2909, pp. 41–52. Springer, Heidelberg (2004)
Czumaj, A., Vöcking, B.: Tight bounds for worst-case equilibria. In: SODA, pp. 413–420 (2002)
Elton, E., Gruber, M.: Modern portfolio theory, 1950 to date. Journal of Banking & Finance 21, 1743–1759 (1997)
Gairing, M., Monien, B., Tiemann, K.: Routing (un-) splittable flow in games with player-specific linear latency functions. In: Bugliesi, M., Preneel, B., Sassone, V., Wegener, I. (eds.) ICALP 2006. LNCS, vol. 4051, pp. 501–512. Springer, Heidelberg (2006)
Mavronicolas, M., Milchtaich, I., Monien, B., Tiemann, K.: Congestion games with player-specific constants. In: Kučera, L., Kučera, A. (eds.) MFCS 2007. LNCS, vol. 4708, pp. 633–644. Springer, Heidelberg (2007)
Milchtaich, I.: Congestion games with player-specific payoff functions. Games and Economic Behavior 13, 111–124 (1996)
Sharpe, W.: Mutual fund performance. Journal of Business 39(1), 119–138 (1966)
Sortino, F., Price, L.: Performance measurement in a downside risk framework. The Journal of Investing, 59–65
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2008 Springer-Verlag Berlin Heidelberg
About this paper
Cite this paper
Fiat, A., Pochter, H. (2008). Subjective vs. Objective Reality — The Risk of Running Late. In: Monien, B., Schroeder, UP. (eds) Algorithmic Game Theory. SAGT 2008. Lecture Notes in Computer Science, vol 4997. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-540-79309-0_25
Download citation
DOI: https://doi.org/10.1007/978-3-540-79309-0_25
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-540-79308-3
Online ISBN: 978-3-540-79309-0
eBook Packages: Computer ScienceComputer Science (R0)