Achieving a Collective Target Through Incentives
摘要
In many games, the payoff of individual users is a function of a collective outcome that is common to all agents. Often, the users may be interested in jointly steering this outcome to a desired value. This work presents such a scenario, where the collective outcome is strictly monotone in the joint strategy of the agents. Further, the agents are irrational in their perception of a random cost component in their payoff. This irrationality is modelled using prospect theory. A coordinator steers the game to a desired collective outcome, by designing incentives. These incentives modify the responses of the users. Owing to the potential structure of the game, the system converges to a Nash equilibrium at which the desired collective outcome is obtained.