Rosenthal (1973) introduced the class of congestion games and proved that they always possess a Nash equilibrium in pure strategies. Fotakis et al. (2005) introduce the notion of a greedy strategy tuple, where players sequentially and irrevocably choose a strategy that is a best response to the choice of strategies by former players. Whereas the former solution concept is driven by strong assumptions on the rationality of the players and the common knowledge thereof, the latter assumes very little rationality on the players' behavior. From Fotakis [4] it follows that for Tree Representable congestion Games greedy behavior leads to a NE. In this paper we obtain necessary and sufficient conditions for the equivalence of these two solution concepts. Such equivalence enhances the viability of these concepts as realistic outcomes of the environment. The conditions for such equivalence to emerge for monotone symmetric games is that the strategy set has a tree-form, or equivalently is a 'extension-parallel graph'.
The model of congestion games is widely used to analyze games related to traffic and communication. A central property of these games is that they are potential games and hence posses a pure Nash equilibrium. In reality it is often the case that some players cooperatively decide on their joint action in order to maximize the coalition's total utility. This is by modeled by Coalitional Congestion Games. Typical settings include truck drivers who work for the same shipping company, or routers that belong to the same ISP. The formation of coalitions will typically imply that the resulting coalitional congestion game will no longer posses a pure Nash equilibrium. In this paper we provide conditions under which such games are potential games and posses a pure Nash equilibrium.
JEL classification: C72
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