We initiate the study of congestion games with variable demands where the
(variable) demand has to be assigned to exactly one subset of resources. The
players' incentives to use higher demands are stimulated by non-decreasing and
concave utility functions. The payoff for a player is defined as the difference
between the utility of the demand and the associated cost on the used
resources. Although this class of non-cooperative games captures many elements
of real-world applications, it has not been studied in this generality, to our
knowledge, in the past.
We introduce a class of finite strategic games with the property that every
deviation of a coalition of players that is profitable to each of its members
strictly decreases the lexicographical order of a certain function defined on
the set of strategy profiles. We call this property the Lexicographical
Improvement Property (LIP) and show that it implies the existence of a
generalized strong ordinal potential function.