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Consider Pigou's example where the cost of the upper route is 1 and the cost of the lower route is 2x. What is the efficient
Consider Pigou's example where the cost of the upper route is 1 and the cost of the lower route is 2x. What is the efficient share of the traffic that should take the upper route? Here efficient means minimizing aggregate cost.
1/2
1
3/4
2/3
What share of the traffic will take the upper route in the Nash equilibrium?
1/2
1
3/4
2/3
The price of anarchy in this example is
1/2
1
3/4
2/3
What can you say about the price of anarchy without computing anything in this example?
4/3
=4/3
4/3
none of the above
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