Schelling's segregation model is a landmark model in sociology. It shows the counterintuitive phenomenon that residential segregation between individuals of different groups can emerge even when all involved individuals are tolerant. Although the model is widely studied, no pure game-theoretic version where rational agents strategically choose their location exists. We close this gap by introducing and analyzing generalized game-theoretic models of Schelling segregation, where the agents can also have individual location preferences.For our models we investigate the convergence behavior and the efficiency of their equilibria. In particular, we prove guaranteed convergence to an equilibrium in the version which is closest to Schelling's original model. Moreover, we provide tight bounds on the Price of Anarchy.

The phenomenon of residential segregation was captured by Schelling's famous segregation model where two types of agents are placed on a grid and an agent is content with her location if the fraction of her neighbors which have the same type as her is at least τ , for some 0 < τ < 1. Discontent agents simply swap their location with a randomly chosen other discontent agent or jump to a random empty cell.We analyze a generalized game-theoretic model of Schelling segregation which allows more than two agent types and more general underlying graphs modeling the residential area. For this we show that both aspects heavily influence the dynamic properties and the tractability of finding an optimal placement. We map the boundary of when improving response dynamics (IRD), i.e., the natural approach for finding equilibrium states, are guaranteed to converge. For this we prove several sharp threshold results where guaranteed IRD convergence suddenly turns into the strongest possible non-convergence result: a violation of weak acyclicity. In particular, we show such threshold results also for Schelling's original model, which is in contrast to the standard assumption in many empirical papers. Furthermore, we show that in case of convergence, IRD find an equilibrium in O(m) steps, where m is the number of edges in the underlying graph and show that this bound is met in empirical simulations starting from random initial agent placements.

Network creation games investigate complex networks from a game-theoretic point of view. Based on the original model by Fabrikant et al. [PODC'03] many variants have been introduced. However, almost all versions have the drawback that edges are treated uniformly, i.e. every edge has the same cost and that this common parameter heavily influences the outcomes and the analysis of these games.We propose and analyze simple and natural parameter-free network creation games with non-uniform edge cost. Our models are inspired by social networks where the cost of forming a link is proportional to the popularity of the targeted node. Besides results on the complexity of computing a best response and on various properties of the sequential versions, we show that the most general version of our model has constant Price of Anarchy.