When Does Selfishness Align with Team Goals? A Structural Analysis of Equilibrium and Optimality

Fuente: arXiv
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Autores principales: Xu, Gehui, Parisini, Thomas, Malikopoulos, Andreas A.
Formato: Preprint
Publicado: 2025
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author Xu, Gehui
Parisini, Thomas
Malikopoulos, Andreas A.
author_facet Xu, Gehui
Parisini, Thomas
Malikopoulos, Andreas A.
contents This paper investigates the relationship between the team-optimal solution and the Nash equilibrium (NE) to assess the impact of self-interested decisions on team performance. In classical team decision problems, team members typically act cooperatively towards a common objective to achieve a team-optimal solution. However, in practice, members may behave selfishly by prioritizing their goals, resulting in an NE under a non-cooperative game. To study this misalignment, we develop a parameterized model for team and game problems, where game parameters represent each individual's deviation from the team objective. The study begins by exploring the consistency and deviation between the NE and the team-optimal solution under fixed game parameters. We provide a necessary and sufficient condition for any NE to be a team optimum, along with establishing an upper bound to measure their difference when the consistency condition fails. The exploration then focuses on aligning NE strategies towards the team-optimal solution through the adjustment of game parameters, resulting in a non-convex and non-smooth bi-level optimization problem. We propose a hypergradient-based algorithm for this problem, and establish its convergence to the critical points. Finally, we validate our theoretical findings through extensive simulation studies.
format Preprint
id arxiv_https___arxiv_org_abs_2508_13450
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle When Does Selfishness Align with Team Goals? A Structural Analysis of Equilibrium and Optimality
Xu, Gehui
Parisini, Thomas
Malikopoulos, Andreas A.
Optimization and Control
Computer Science and Game Theory
This paper investigates the relationship between the team-optimal solution and the Nash equilibrium (NE) to assess the impact of self-interested decisions on team performance. In classical team decision problems, team members typically act cooperatively towards a common objective to achieve a team-optimal solution. However, in practice, members may behave selfishly by prioritizing their goals, resulting in an NE under a non-cooperative game. To study this misalignment, we develop a parameterized model for team and game problems, where game parameters represent each individual's deviation from the team objective. The study begins by exploring the consistency and deviation between the NE and the team-optimal solution under fixed game parameters. We provide a necessary and sufficient condition for any NE to be a team optimum, along with establishing an upper bound to measure their difference when the consistency condition fails. The exploration then focuses on aligning NE strategies towards the team-optimal solution through the adjustment of game parameters, resulting in a non-convex and non-smooth bi-level optimization problem. We propose a hypergradient-based algorithm for this problem, and establish its convergence to the critical points. Finally, we validate our theoretical findings through extensive simulation studies.
title When Does Selfishness Align with Team Goals? A Structural Analysis of Equilibrium and Optimality
topic Optimization and Control
Computer Science and Game Theory
url https://arxiv.org/abs/2508.13450