Improved equilibria via public service advertising
نویسندگان
چکیده
Many natural games have both high and low cost Nash equilibria: their Price of Anarchy is high and yet their Price of Stability is low. In such cases, one could hope to move behavior from a high cost equilibrium to a low cost one by a “public service advertising campaign” encouraging players to follow the low-cost equilibrium, and if every player follows the advice then we are done. However, the assumption that everyone follows instructions is unrealistic. A more natural assumption is that some players will follow them, while other players will not. In this paper we consider the question of to what extent can such an advertising campaign cause behavior to switch from a bad equilibrium to a good one even if only a fraction of people actually follow the given advice, and do so only temporarily. Unlike the “value of altruism” model, we assume everyone will ultimately act in their own interest. We analyze this question for several important and widely studied classes of games including network design with fair cost sharing, scheduling with unrelated machines, and party affiliation games (which include consensus and cut games). We show that for some of these games (such as fair cost sharing), a random α fraction of the population following the given advice is sufficient to get a guarantee within an O(1/α) factor of the price of stability for any α > 0. For other games (such as party affiliation games), there is a strict threshold (in this case, α < 1/2 yields almost no benefit, yet α > 1/2 is enough to reach near-optimal behavior). Finally, for some games, such as scheduling, no value α < 1 is sufficient. We also consider a “viral marketing” model in which certain players are specifically targeted, and analyze the ability of such targeting to influence behavior using a much smaller number of targeted players. School of Computer Science, Carnegie Mellon University. Supported in part by NSF grant CCF-0514922, by an IBM Graduate Fellowship, and by a Google Research Grant. School of Computer Science, Carnegie Mellon University. Supported in part by NSF grant CCF-0514922 and by a Google Research Grant School of Computer Science, Tel Aviv University and Google Research. This work was supported in part by the IST Programme of the European Community, under the PASCAL Network of Excellence, IST-2002506778, by a grant no. 1079/04 from the Israel Science Foundation and by a grant from United States-Israel Binational Science Foundation (BSF). This publication reflects the authors’ views only.
منابع مشابه
The provision of public goods via advertising Existence of equilibria and welfare analysis
This paper considers an economy where a public good is provided via advertising. The consumers’ preferences are represented using the ‘characteristics’ approach’, and the advertising has a potentially enhancing effect on the characteristics’ content of a given commodity. We define competitive equilibria and show they exist. The welfare properties of the resulting allocations are analyzed, and c...
متن کاملAdvertising in a Differential Oligopoly Game*
We illustrate a differential oligopoly game where firms compete à la Cournot in homogeneous goods in the market phase, and invest in advertising activities aimed at increasing consumers’ reservation price. Such investments produce external effects, characterizing the advertising activity as a public good. We derive the open-loop and the closed-loop Nash equilibria, and show that the properties ...
متن کاملPrice Competition, Advertising and Media Market Concentration*
In media markets, the value of advertisement exposure depends on circulation, and media consumers’ valuation is affected by advertising. This paper analyzes media market competition in a duopoly framework. There exist symmetric and asymmetric equilibria in terms of firm size. There is less scope for asymmetry when products are more differentiated or of higher intrinsic quality. Some media exhib...
متن کاملAdvertising and Media Market Concentration*
In media markets, the value of advertisement exposure depends on circulation, and media consumers’ valuation is affected by advertising. This paper analyzes media market competition in a duopoly framework. There exist symmetric and asymmetric equilibria in terms of firm size, and sometimes a natural monopoly may emerge . There is less scope for asymmetry when products are more differentiated or...
متن کاملAn Investigation of Advertising Appeal on Consumer Response in Service Advertising
Advertising appeal plays a significant role in the execution of advertising. In service advertising, they are of more importance because of the peculiar characteristics of services. This study attempts to investigate the impact of emotional and rational appeal on service advertising. This study also studies the impact of typology of service as a moderating variable in the relation of advertisin...
متن کاملThe Role of Public Relations Activities of the Social Security Organization on the Satisfaction of Insured Persons (Case Study of West Tehran Branch)
Public relations is a managerial process aimed at attracting and maintaining positive behaviours in favour of social groups and independent organizations to achieve the mission and goals of the organization. The main responsibility of public relations is to build and maintain a "pleasant environment" for the organization and the client, and the condition for the survival and survival of the soc...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
عنوان ژورنال:
دوره شماره
صفحات -
تاریخ انتشار 2009