Author name cluster

Pascal Lenzner

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22 papers

2 author rows

AAMAS Conference 2026 Conference Paper

Greedy Routing Reachability Games

Pascal Lenzner
Paraskevi Machaira

Today’s networks consist of many autonomous entities that follow their own objectives, i. e. , smart devices or parts of large AI systems, that are interconnected. Given the size and complexity of most communication networks, each entity typically only has a local view and thus must rely on a local routing protocol for sending and forwarding packets. A common solution for this is greedy routing, where packets are locally forwarded to a neighbor in the network that is closer to the packet’s destination. In this paper we investigate a game-theoretic model with autonomous agents that aim at forming a network where greedy routing is enabled. The agents are positioned in a metric space and each agent tries to establish as few links as possible, while maintaining that it can reach every other agent via greedy routing. Thus, this model captures how greedy routing networks are formed without any assumption on the distribution of the agents or the specific employed greedy routing protocol. Hence, it distills the essence that makes greedy routing work. We study two variants of the model: with directed edges or with undirectededges. Fortheformer, weshowthatequilibriaexist, have optimal total cost, and that in Euclidean metrics they can be found efficiently. However, even for this simple setting computing optimal strategies is NP-hard. For the much more challenging setting with undirected edges, we show for the realistic setting with agents in 2D Euclidean space that the price of anarchy is between 1. 75 and 1. 8 and for higher dimensions it is less than 2. Also, we show that best response dynamics may cycle, but that in Euclidean space almost optimalapproximateequilibriacanbecomputedinpolynomialtime. Moreover, for 2D Euclidean space, these approximate equilibria outperform the well-known Delaunay triangulation.

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AAMAS Conference 2026 Conference Paper

Metric Hedonic Games on the Line

Merlin de la Haye
Pascal Lenzner
Farehe Soheil
Marcus Wunderlich

Hedonic games are fundamental models for investigating the formation of coalitions among a set of strategic agents, where every agent has a certain utility for every possible coalition of agents it can be part of. To avoid the intractability of defining exponentially many utilities for all possible coalitions, many variants with succinct representations of the agents’ utility functions have been devised and analyzed, e. g. , modified fractional hedonic games by Monaco et al. [36]. We extend this by studying a novel succinct variant that is related to modified fractional hedonic games. In our model, each agent has a fixed type-value and an agent’s cost for some given coalition is based on the differences between its value and those of the other members of its coalition. This allows to model natural situations like athletes forming training groups with similar performance levels or voters that partition themselves along a political spectrum. In particular, we investigate natural variants where an agent’s cost is defined by distance thresholds, or by the maximum or average value difference to the other agents in its coalition. For these settings, we study the existence of stable coalition structures, their properties, and their quality in terms of the price of anarchy and the price of stability. Further, we investigate the impact of limiting the maximum number of coalitions. Despite the simple setting with metric distances on a line, we uncover a rich landscape of models, partially with counter-intuitive behavior. Also, our focus on both swap stability and jump stability allows us to study the influence of fixing the number and the size of the coalitions. Overall, we find that stable coalition structures always exist but that their properties and quality can vary widely.

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AAAI Conference 2026 Conference Paper

Optimal Welfare in Noncooperative Network Formation Under Attack

Natan Doubez
Pascal Lenzner
Marcus Wunderlich

Communication networks are essential for our economy and our everyday lives. This makes them lucrative targets for attacks. Today, we see an ongoing battle between criminals that try to disrupt our key communication networks and security professionals that try to mitigate these attacks. However, today's networks, like the Internet or peer-to-peer networks among smart devices, are not controlled by a single authority, but instead consist of many independently administrated entities that are interconnected. Thus, both the decisions of how to interconnect and how to secure against potential attacks are taken in a decentralized way by selfish agents. This strategic setting, with agents that want to interconnect and potential attackers that want to disrupt the network, was captured via an influential game-theoretic model by Goyal, Jabbari, Kearns, Khanna, and Morgenstern (WINE 2016). We revisit this model and show improved tight bounds on the achieved robustness of networks created by selfish agents. As our main result, we show that such networks can resist attacks of a large class of potential attackers, i.e., these networks maintain asymptotically optimal welfare post attack. This improves several bounds and resolves an open problem. Along the way, we show the counter-intuitive result, that attackers that aim at minimizing the social welfare post attack do not actually inflict the greatest possible damage.

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AAAI Conference 2025 Conference Paper

Strategic Network Creation for Enabling Greedy Routing

Julian Berger
Tobias Friedrich
Pascal Lenzner
Paraskevi Machaira
Janosch Ruff

Today we rely on networks that are created and maintained by smart devices. For such networks, there is no governing central authority but instead the network structure is shaped by the decisions of selfish intelligent agents. A key property of such communication networks is that they should be easy to navigate for routing data. For this, a common approach is greedy routing, where every device simply routes data to a neighbor that is closer to the respective destination. Networks of intelligent agents can be analyzed via a game-theoretic approach and in the last decades many variants of network creation games have been proposed and analyzed. In this paper we present the first game-theoretic network creation model that incorporates greedy routing, i.e., the strategic agents in our model are embedded in some metric space and strive for creating a network among themselves where all-pairs greedy routing is enabled. Besides this, the agents optimize their connection quality within the created network by aiming for greedy routing paths with low stretch. For our model, we analyze the existence of (approximate)-equilibria and the computational hardness in different underlying metric spaces. E.g., we characterize the set of equilibria in 1-2-metrics and tree metrics and show that Nash equilibria always exist. For Euclidean space, the setting which is most relevant in practice, we prove that equilibria are not guaranteed to exist but that the well-known Θ-graph construction yields networks having a low stretch that are game-theoretically almost stable. For general metric spaces, we show that approximate equilibria exist where the approximation factor depends on the cost of maintaining any link.

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AAMAS Conference 2025 Conference Paper

Temporal Network Creation Games: The Impact of Non-Locality and Terminals

Davide Bilò
Sarel Cohen
Tobias Friedrich
Hans Gawendowicz
Nicolas Klodt
Pascal Lenzner
George Skretas

We live in a world full of networks where our economy, our communication, and even our social life crucially depends on them. These networks typically emerge from the interaction of many entities, which is why researchers study agent-based models of network formation. While traditionally static networks with a fixed set of links were considered, a recent stream of works focuses on networks whose behavior may change over time. In particular, Bilò et al. (IJCAI 2023) recently introduced a game-theoretic network formation model that embeds temporal aspects in networks. More precisely, a network is formed by selfish agents corresponding to nodes in a given host network with edges having labels denoting their availability over time. Each agent strategically selects local, i. e. , incident, edges to ensure temporal reachability towards everyone at low cost. In this work we set out to explore the impact of two novel conceptual features: agents are no longer restricted to creating incident edges, called the global setting, and agents might only want to ensure that they can reach a subset of the other nodes, called the terminal model. For both, we study the existence, structure, and quality of equilibrium networks. For the terminal model, we prove that many core properties crucially depend on the number of terminals. We also develop a novel tool that allows translating equilibrium constructions from the non-terminal model to the terminal model. For the global setting, we show the surprising result that equilibria in the global and the local model are incomparable and we establish a high lower bound on the Price of Anarchy of the global setting that matches the upper bound of the local model. This shows the counter-intuitive fact that allowing agents more flexibility in edge creation does not improve the quality of equilibrium networks. This work is licensed under a Creative Commons Attribution International 4. 0 License. Proc. of the 24th International Conference on Autonomous Agents and Multiagent Systems (AAMAS 2025), Y. Vorobeychik, S. Das, A. Nowé (eds.), May 19 – 23, 2025, Detroit, Michigan, USA. © 2025 International Foundation for Autonomous Agents and Multiagent Systems (www. ifaamas. org). Finally, in contrast to Bilò et al. (IJCAI 2023) where the authors restrict the model to single labels per connection, all of our results hold for the restricted case and the generalized case where every edge can have multiple labels.

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AAMAS Conference 2025 Conference Paper

The Bakers and Millers Game with Restricted Locations

Simon Krogmann
Pascal Lenzner
Alexander Skopalik

We study strategic location choice by customers and sellers, termed the Bakers and Millers Game in the literature. In our generalized setting, each miller can freely choose any location for setting up a mill, while each baker is restricted in the choice of location for setting up a bakery. For optimal bargaining power, a baker would like to select a location with many millers to buy flour from and with little competition from other bakers. Likewise, a miller aims for a location with many bakers and few competing millers. Thus, both types of agents choose locations to optimize the ratio of agents of opposite type divided by agents of the same type at their chosen location. Originally raised in the context of Fractional Hedonic Games, the Bakers and Millers Game has applications that range from commerce to product design. We study the impact of location restrictions on the properties of the game. While pure Nash equilibria trivially exist in the setting without location restrictions, we show via a sophisticated, efficient algorithm that even the more challenging restricted setting admits equilibria. Moreover, the computed equilibrium approximates the optimal social welfare by a factor of at most 2 𝑒 𝑒−1. Furthermore, we give tight bounds on the price of anarchy/stability. On the conceptual side, the location choice feature adds a new layer to Hedonic Games, in the sense that agents that select the same location form a coalition. This allows to naturally restrict the possible coalitions that can be formed. With this, our model generalizes simple symmetric Fractional Hedonic Games on complete bipartite valuation graphs and also Hedonic Diversity Games with utilities single-peaked at 0. We believe that this generalization is also a very interesting direction for other types of Hedonic Games.

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IJCAI Conference 2024 Conference Paper

Equilibria in Two-Stage Facility Location with Atomic Clients

Simon Krogmann
Pascal Lenzner
Alexander Skopalik
Marc Uetz
Marnix C. Vos

We consider competitive facility location as a two-stage multi-agent system with two types of clients. For a given host graph with weighted clients on the vertices, first facility agents strategically select vertices for opening their facilities. Then, the clients strategically select which of the opened facilities in their neighborhood to patronize. Facilities want to attract as much client weight as possible, clients want to minimize congestion on the chosen facility. All recently studied versions of this model assume that clients can split their weight strategically. We consider clients with unsplittable weights, but allow mixed strategies. So clients may randomize over which facility to patronize. Besides modeling a natural client behavior, this subtle change yields drastic changes, e. g. , for a given facility placement, qualitatively different client equilibria are possible. As our main result, we show that pure subgame perfect equilibria always exist if all client weights are identical. For this, we use a novel potential function argument, employing a hierarchical classification of the clients and sophisticated rounding in each step. In contrast, for non-identical clients, we show that deciding the existence of even approximately stable states is computationally intractable. On the positive side, we give a tight bound of 2 on the price of anarchy which implies high social welfare of equilibria, if they exist.

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AAMAS Conference 2023 Conference Paper

Equilibria and Convergence in Fire Sale Games

Nils Bertschinger
Martin Hoefer
Simon Krogmann
Pascal Lenzner
Steffen Schuldenzucker
Lisa Wilhelmi

The complex interactions between algorithmic trading agents can have a severe influence on the functioning of our economy, as witnessed by recent banking crises and trading anomalies. A common phenomenon in these situations are fire sales, a contagious process of asset sales that trigger further sales. We study the existence and structure of equilibria in a game-theoretic model of fire sales. We prove that for a wide parameter range (e. g. , convex price impact functions), equilibria exist and form a complete lattice. This is contrasted with a non-existence result for concave price impact functions. Moreover, we study the convergence of best-response dynamics towards equilibria when they exist. In general, best-response dynamics may cycle. However, in many settings they are guaranteed to converge to the socially optimal equilibrium when starting from a natural initial state. Moreover, we discuss a simplified variant of the dynamics that is less informationally demanding and converges to the same equilibria. We compare the dynamics in terms of convergence speed.

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IJCAI Conference 2023 Conference Paper

Schelling Games with Continuous Types

Davide Bilò
Vittorio Bilò
Michelle Döring
Pascal Lenzner
Louise Molitor
Jonas Schmidt

In most major cities and urban areas, residents form homogeneous neighborhoods along ethnic or socioeconomic lines. This phenomenon is widely known as residential segregation and has been studied extensively. Fifty years ago, Schelling proposed a landmark model that explains residential segregation in an elegant agent-based way. A recent stream of papers analyzed Schelling's model using game-theoretic approaches. However, all these works considered models with a given number of discrete types modeling different ethnic groups. We focus on segregation caused by non-categorical attributes, such as household income or position in a political left-right spectrum. For this, we consider agent types that can be represented as real numbers. This opens up a great variety of reasonable models and, as a proof of concept, we focus on several natural candidates. In particular, we consider agents that evaluate their location by the average type-difference or the maximum type-difference to their neighbors, or by having a certain tolerance range for type-values of neighboring agents. We study the existence and computation of equilibria and provide bounds on the Price of Anarchy and Stability. Also, we present simulation results that compare our models and shed light on the obtained equilibria for our variants.

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AAMAS Conference 2023 Conference Paper

Single-Peaked Jump Schelling Games

Tobias Friedrich
Pascal Lenzner
Louise Molitor
Lars Seifert

We contribute to the recent endeavor of investigating residential segregation models with realistic agent behavior by studying Jump Schelling Games with agents having a single-peaked utility function. In such games, there are empty nodes in the graph and agents can strategically jump to such nodes to improve their utility.

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AAAI Conference 2023 Conference Paper

Strategic Facility Location with Clients That Minimize Total Waiting Time

Simon Krogmann
Pascal Lenzner
Alexander Skopalik

We study a non-cooperative two-sided facility location game in which facilities and clients behave strategically. This is in contrast to many other facility location games in which clients simply visit their closest facility. Facility agents select a location on a graph to open a facility to attract as much purchasing power as possible, while client agents choose which facilities to patronize by strategically distributing their purchasing power in order to minimize their total waiting time. Here, the waiting time of a facility depends on its received total purchasing power. We show that our client stage is an atomic splittable congestion game, which implies existence, uniqueness and efficient computation of a client equilibrium. Therefore, facility agents can efficiently predict client behavior and make strategic decisions accordingly. Despite that, we prove that subgame perfect equilibria do not exist in all instances of this game and that their existence is NP-hard to decide. On the positive side, we provide a simple and efficient algorithm to compute 3-approximate subgame perfect equilibria.

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IJCAI Conference 2023 Conference Paper

Strategic Resource Selection with Homophilic Agents

Jonathan Gadea Harder
Simon Krogmann
Pascal Lenzner
Alexander Skopalik

The strategic selection of resources by selfish agents is a classical research direction, with Resource Selection Games and Congestion Games as prominent examples. In these games, agents select available resources and their utility then depends on the number of agents using the same resources. This implies that there is no distinction between the agents, i. e. , they are anonymous. We depart from this very general setting by proposing Resource Selection Games with heterogeneous agents that strive for a joint resource usage with similar agents. So, instead of the number of other users of a given resource, our model considers agents with different types and the decisive feature is the fraction of same-type agents among the users. More precisely, similarly to Schelling Games, there is a tolerance threshold tau in [0, 1] which specifies the agents' desired minimum fraction of same-type agents on a resource. Agents strive to select resources where at least a tau-fraction of those resources' users have the same type as themselves. For tau=1, our model generalizes hedonic diversity games with single-peaked utilities with a peak at 1. For our general model, we consider the existence and quality of equilibria and the complexity of maximizing the social welfare. Additionally, we consider a bounded rationality model, where agents can only estimate the utility of a resource, since they only know the fraction of same-type agents on a given resource, but not the exact numbers. Thus, they cannot know the impact a strategy change would have on a target resource. Interestingly, we show that this type of bounded rationality yields favorable game-theoretic properties and specific equilibria closely approximate equilibria of the full knowledge setting.

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IJCAI Conference 2023 Conference Paper

Temporal Network Creation Games

Davide Bilò
Sarel Cohen
Tobias Friedrich
Hans Gawendowicz
Nicolas Klodt
Pascal Lenzner
George Skretas

Most networks are not static objects, but instead they change over time. This observation has sparked rigorous research on temporal graphs within the last years. In temporal graphs, we have a fixed set of nodes and the connections between them are only available at certain time steps. This gives rise to a plethora of algorithmic problems on such graphs, most prominently the problem of finding temporal spanners, i. e. , the computation of subgraphs that guarantee all pairs reachability via temporal paths. To the best of our knowledge, only centralized approaches for the solution of this problem are known. However, many real-world networks are not shaped by a central designer but instead they emerge and evolve by the interaction of many strategic agents. This observation is the driving force of the recent intensive research on game-theoretic network formation models. In this work we bring together these two recent research directions: temporal graphs and game-theoretic network formation. As a first step into this new realm, we focus on a simplified setting where a complete temporal host graph is given and the agents, corresponding to its nodes, selfishly create incident edges to ensure that they can reach all other nodes via temporal paths in the created network. This yields temporal spanners as equilibria of our game. We prove results on the convergence to and the existence of equilibrium networks, on the complexity of finding best agent strategies, and on the quality of the equilibria. By taking these first important steps, we uncover challenging open problems that call for an in-depth exploration of the creation of temporal graphs by strategic agents.

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AAMAS Conference 2023 Conference Paper

The Swiss Gambit

Ágnes Cseh
Pascal Führlich
Pascal Lenzner

In each round of a Swiss-system tournament, players of similar score are paired against each other. An intentional early loss therefore might lead to weaker opponents in later rounds and thus to a better final tournament result—a phenomenon known as the Swiss Gambit. To the best of our knowledge it is an open question whether this strategy can actually work. This paper provides answers based on an empirical agent-based analysis for the most prominent application area of the Swisssystem format, namely chess tournaments. We simulate realistic tournaments by employing the official FIDE pairing system for computing the player pairings in each round. We show that even though gambits are widely possible in Swiss-system chess tournaments, profiting from them requires a high degree of predictability of match results. Moreover, even if a Swiss Gambit succeeds, the obtained improvement in the final ranking is limited. Our experiments prove that counting on a Swiss Gambit is indeed a lot more of a risky gambit than a reliable strategy to improve the final rank.

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AAMAS Conference 2022 Conference Paper

Asynchronous Opinion Dynamics in Social Networks

Petra Berenbrink
Martin Hoefer
Dominik Kaaser
Pascal Lenzner
Malin Rau
Daniel Schmand

Opinion spreading in a society decides the fate of elections, the success of products, and the impact of political or social movements. The model by Hegselmann and Krause is a well-known theoretical model to study such opinion formation processes in social networks. In contrast to many other theoretical models, it does not converge towards a situation where all agents agree on the same opinion. Instead, it assumes that people find an opinion reasonable if and only if it is close to their own. The system converges towards a stable situation where agents sharing the same opinion form a cluster, and agents in different clusters do not influence each other. We focus on the social variant of the Hegselmann-Krause model where agents are connected by a social network and their opinions evolve in an iterative process. When activated, an agent adopts the average of the opinions of its neighbors having a similar opinion. By this, the set of influencing neighbors of an agent may change over time. To the best of our knowledge, social Hegselmann-Krause systems with asynchronous opinion updates have only been studied with the complete graph as social network. We show that such opinion dynamics with random agent activation are guaranteed to converge for any social network. We provide an upper bound of O(𝑛|𝐸|2(𝜀/𝛿)2) on the expected number of opinion updates until convergence, where |𝐸| is the number of edges of the social network. For the complete social network we show a bound of O(𝑛3(𝑛2 + (𝜀/𝛿)2)) that represents a major improvement over the previously best upper bound of O(𝑛9(𝜀/𝛿)2). Our bounds are complemented by simulations that indicate asymptotically matching lower bounds.

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IJCAI Conference 2022 Conference Paper

Network Creation with Homophilic Agents

Martin Bullinger
Pascal Lenzner
Anna Melnichenko

Network Creation Games are an important framework for understanding the formation of real-world networks. These games usually assume a set of indistinguishable agents strategically buying edges at a uniform price leading to a network among them. However, in real life, agents are heterogeneous and their relationships often display a bias towards similar agents, say of the same ethnic group. This homophilic behavior on the agent level can then lead to the emergent global phenomenon of social segregation. We study Network Creation Games with multiple types of homophilic agents and non-uniform edge cost, introducing two models focusing on the perception of same-type and different-type neighboring agents, respectively. Despite their different initial conditions, both our theoretical and experimental analysis show that both the composition and segregation strength of the resulting stable networks are almost identical, indicating a robust structure of social networks under homophily.

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IJCAI Conference 2022 Conference Paper

Tolerance is Necessary for Stability: Single-Peaked Swap Schelling Games

Davide Bilò
Vittorio Bilò
Pascal Lenzner
Louise Molitor

Residential segregation in metropolitan areas is a phenomenon that can be observed all over the world. Recently, this was investigated via game-theoretic models. There, selfish agents of two types are equipped with a monotone utility function that ensures higher utility if an agent has more same-type neighbors. The agents strategically choose their location on a given graph that serves as residential area to maximize their utility. However, sociological polls suggest that real-world agents are actually favoring mixed-type neighborhoods, and hence should be modeled via non-monotone utility functions. To address this, we study Swap Schelling Games with single-peaked utility functions. Our main finding is that tolerance, i. e. , agents favoring fifty-fifty neighborhoods or being in the minority, is necessary for equilibrium existence on almost regular or bipartite graphs. Regarding the quality of equilibria, we derive (almost) tight bounds on the Price of Anarchy and the Price of Stability. In particular, we show that the latter is constant on bipartite and almost regular graphs.

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AAAI Conference 2021 Conference Paper

Selfish Creation of Social Networks

Davide Bilò
Tobias Friedrich
Pascal Lenzner
Stefanie Lowski
Anna Melnichenko

Understanding real-world networks has been a core research endeavor throughout the last two decades. Network Creation Games are a promising approach for this from a gametheoretic perspective. In these games, selfish agents corresponding to nodes in a network strategically decide which links to form to optimize their centrality. Many versions have been introduced and analyzed, but none of them fits to modeling the evolution of social networks. In real-world social networks, connections are often established by recommendations from common acquaintances or by a chain of such recommendations. Thus establishing and maintaining a contact with a friend of a friend is easier than connecting to complete strangers. This explains the high clustering, i. e. , the abundance of triangles, in real-world social networks. We propose and analyze a network creation model inspired by real-world social networks. Edges are formed in our model via bilateral consent of both endpoints and the cost for establishing and maintaining an edge is proportional to the distance of the endpoints before establishing the connection. We provide results for generic cost functions, which essentially only must be convex functions in the distance of the endpoints without the respective edge. For this broad class of cost functions, we provide many structural properties of equilibrium networks and prove (almost) tight bounds on the diameter, the Price of Anarchy and the Price of Stability. Moreover, as a proof-of-concept we show via experiments that the created equilibrium networks of our model indeed closely mimics real-world social networks. We observe degree distributions that seem to follow a power-law, high clustering, and low diameters. This can be seen as a promising first step towards game-theoretic network creation models that predict networks featuring all core real-world properties.

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IJCAI Conference 2021 Conference Paper

Two-Stage Facility Location Games with Strategic Clients and Facilities

Simon Krogmann
Pascal Lenzner
Louise Molitor
Alexander Skopalik

We consider non-cooperative facility location games where both facilities and clients act strategically and heavily influence each other. This contrasts established game-theoretic facility location models with non-strategic clients that simply select the closest opened facility. In our model, every facility location has a set of attracted clients and each client has a set of shopping locations and a weight that corresponds to its spending capacity. Facility agents selfishly select a location for opening their facility to maximize the attracted total spending capacity, whereas clients strategically decide how to distribute their spending capacity among the opened facilities in their shopping range. We focus on a natural client behavior similar to classical load balancing: our selfish clients aim for a distribution that minimizes their maximum waiting time for getting serviced, where a facility’s waiting time corresponds to its total attracted client weight. We show that subgame perfect equilibria exist and we give almost tight constant bounds on the Price of Anarchy and the Price of Stability, which even hold for a broader class of games with arbitrary client behavior. Since facilities and clients influence each other, it is crucial for the facilities to anticipate the selfish clients’ behavior when selecting their location. For this, we provide an efficient algorithm that also implies an efficient check for equilibrium. Finally, we show that computing a socially optimal facility placement is NP-hard and that this result holds for all feasible client weight distributions.

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IJCAI Conference 2020 Conference Paper

Flow-Based Network Creation Games

Hagen Echzell
Tobias Friedrich
Pascal Lenzner
Anna Melnichenko

Network Creation Games(NCGs) model the creation of decentralized communication networks like the Internet. In such games strategic agents corresponding to network nodes selfishly decide with whom to connect to optimize some objective function. Past research intensively analyzed models where the agents strive for a central position in the network. This models agents optimizing the network for low-latency applications like VoIP. However, with today's abundance of streaming services it is important to ensure that the created network can satisfy the increased bandwidth demand. To the best of our knowledge, this natural problem of the decentralized strategic creation of networks with sufficient bandwidth has not yet been studied. We introduce Flow-Based NCGs where the selfish agents focus on bandwidth instead of latency. In essence, budget-constrained agents create network links to maximize their minimum or average network flow value to all other network nodes. Equivalently, this can also be understood as agents who create links to increase their connectivity and thus also the robustness of the network. For this novel type of NCG we prove that pure Nash equilibria exist, we give a simple algorithm for computing optimal networks, we show that the Price of Stability is 1 and we prove an (almost) tight bound of 2 on the Price of Anarchy. Last but not least, we show that our models do not admit a potential function.

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MFCS Conference 2020 Conference Paper

Topological Influence and Locality in Swap Schelling Games

Davide Bilò
Vittorio Bilò
Pascal Lenzner
Louise Molitor

Residential segregation is a wide-spread phenomenon that can be observed in almost every major city. In these urban areas residents with different racial or socioeconomic background tend to form homogeneous clusters. Schelling’s famous agent-based model for residential segregation explains how such clusters can form even if all agents are tolerant, i. e. , if they agree to live in mixed neighborhoods. For segregation to occur, all it needs is a slight bias towards agents preferring similar neighbors. Very recently, Schelling’s model has been investigated from a game-theoretic point of view with selfish agents that strategically select their residential location. In these games, agents can improve on their current location by performing a location swap with another agent who is willing to swap. We significantly deepen these investigations by studying the influence of the underlying topology modeling the residential area on the existence of equilibria, the Price of Anarchy and on the dynamic properties of the resulting strategic multi-agent system. Moreover, as a new conceptual contribution, we also consider the influence of locality, i. e. , if the location swaps are restricted to swaps of neighboring agents. We give improved almost tight bounds on the Price of Anarchy for arbitrary underlying graphs and we present (almost) tight bounds for regular graphs, paths and cycles. Moreover, we give almost tight bounds for grids, which are commonly used in empirical studies. For grids we also show that locality has a severe impact on the game dynamics.

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AAMAS Conference 2019 Conference Paper

From Hotelling to Load Balancing: Approximation and the Principle of Minimum Differentiation

Matthias Feldotto
Pascal Lenzner
Louise Molitor
Alexander Skopalik

Competing firms tend to select similar locations for their stores. This phenomenon, called the principle of minimum differentiation, was captured by Hotelling with a landmark model of spatial competition but is still the object of an ongoing scientific debate. Although consistently observed in practice, many more realistic variants of Hotelling’s model fail to support minimum differentiation or do not have pure equilibria at all. In particular, it was recently proven for a generalized model which incorporates negative network externalities and which contains Hotelling’s model and classical selfish load balancing as special cases, that the unique equilibria do not adhere to minimum differentiation. Furthermore, it was shown that for a significant parameter range pure equilibria do not exist. We derive a sharp contrast to these previous results by investigating Hotelling’s model with negative network externalities from an entirely new angle: approximate pure subgame perfect equilibria. This approach allows us to prove analytically and via agent-based simulations that approximate equilibria having good approximation guarantees and that adhere to minimum differentiation exist for the full parameter range of the model. Moreover, we show that the obtained approximate equilibria have high social welfare.

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