Welfare and price of anarchy under incomplete information in network games
Develop a welfare analysis and characterize the price of anarchy for the quadratic network game u_i(x) = - (1/2) γ_i x_i^2 + (β_i + ∑_{j ≠ i} g_{ij} x_j) x_i when agents have incomplete information about the parameters γ_i, b_i, and g_{ij} and reason within standard Bayesian frameworks, quantifying inefficiency and deriving tractable characterizations in this information environment.
References
The linear structure of our basic environment works nicely with incomplete information, and permits tractable characterizations. However, the study of welfare, price of anarchy, etc., is completely open.
— Eigenvalues in microeconomics
(2502.12309 - Golub, 17 Feb 2025) in Paragraph “Toward Open Questions” within the section “Games on Networks”