An Equilibrium Analysis of Scrip Systems
Abstract
A game-theoretic model of scrip (artificial currency) systems is analyzed. It is shown that relative entropy can be used to characterize the distribution of agent wealth when all agents use threshold strategies —that is, they volunteer to do work if and only if they have below a threshold amount of money. Monotonicity of agents' best-reply functions is used to show that scrip systems have pure strategy equilibria where all agents use threshold strategies. An algorithm is given that can compute such an equilibrium and the resulting distribution of wealth.
Document Details
- Document Type
- Pub Defense Publication
- Publication Date
- Jun 23, 2015
- Source ID
- 10.1145/2659006
Entities
People
- Eric J. Friedman
- Ian A. Kash
- Joseph Halpern
Organizations
- Air Force Office of Scientific Research
- Cornell University
- Microsoft
- National Science Foundation
- Office of Naval Research
- University of California, Berkeley