Rational Competitive Analysis

Much work in computer science has adopted competitive analysis as a tool for decision making under uncertainty. In this work we extend competitive analysis to the context of multi-agent systems. Unlike classical competitive analysis where the behavior of an agent’s environment is taken to be arbitrary, we consider the case where an agent’s environment consists of other agents. These agents will usually obey some (minimal) rationality constraints. This leads to the definition of rational competitive analysis. We introduce the concept of rational competitive analysis, and initiate the study of competitive analysis for multi-agent systems. We also discuss the application of rational competitive analysis to the context of bidding games, as well as to the classical one-way trading problem.