Congestion Games
Games where each player's payoff depends on the load each facility carries.
Definition
Players choose subsets of facilities ; payoff where is the number of players using .
Nonatomic (continuous flow) and atomic (discrete) variants yield Wardrop and Nash equilibria respectively.
Intuition
Every facility's cost depends only on its total usage, not on who uses it.
Always a potential game, so pure equilibria always exist.
Worked example
Selfish routing on Pigou's network shows the Price of Anarchy for linear latencies (Roughgarden-Tardos).
Job scheduling on identical machines is a congestion game.
The math
Rosenthal (1973): every congestion game has the exact potential , hence a pure Nash equilibrium.
Beckmann-McGuire-Winsten variational formulation gives Wardrop equilibrium as a convex program.
Where it is used
Internet routing (BGP), transportation planning, load balancing in data centers, and cloud resource allocation.
Core in algorithmic game theory.
More in Game theory
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