The price of fairness with the extended Perles-Maschler solution (Q471022): Difference between revisions

The paper concerns the extended Perles-Maschler (EPM) solution of the multi-player Nash bargaining problem [\textit{M. A. Perles} and \textit{M. Maschler}, Int. J. Game Theory 10, 163--193 (1981; Zbl 0474.90094)]. The authors characterize the price of fairness (POF, i.e., the relative system efficiency loss due to the solution deviation) of three measures of the EPM solution for the multi-player Nash bargaining problem. They provide lower bounds of the three measures of the system efficiency for the EPM solution and show that these bounds are asymptotically tight. The paper contains six sections and an appendix with the proofs of some results, including a short overview in Section 1 onto the main related literature and concluding remarks in Section 6. The Nash bargaining problem and the geometric procedure of the EPM solution are presented in Section 2. An alternative characterization of the EPM solution proposed earlier in the literature is recalled in Section 3. The main results of the paper are presented in Section 4, where the authors prove three theorems concerning lower bounds of the measures that characterize the system efficiency loss of the EPM solution. Three other theorems are stated in Section 5 and proven in the appendix. In that section, the authors provide some examples showing that the bounds are asymptotically tight.