The Price of Mediation

DISCRETE MATHEMATICS AND THEORETICAL COMPUTER SCIENCE, pp. 31.0-60, 2014.

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Abstract:

We study the relationship between correlated equilibria and Nash equilibria. In contrast to previous work focusing on the possible benefits of a benevolent mediator, we define and bound the Price of Mediation (PoM): the ratio of the social cost (or utility) of the worst correlated equilibrium to the social cost (or utility) of the worst N...More

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