The Wireless Mesh Network (WMN) has already been recognized as a promising broadband access network technology from both academic and commercial perspective. In order to improve the performance of WMNs, extensive research efforts have been dedicated towards finding means to increase the number of simultaneous transmissions in the network while avoiding signal interference among radios. In case of WMNs based on IEEE 802.11 b/g standards, most recent research works have relied upon the usage of orthogonal channels for solving the Channel Assignment (CA) problem. In this paper, we explore the possibility of exploiting Partially Overlapped Channels (POCs) by introducing a novel game theoretic distributed CA algorithm. Our proposed algorithm outperforms both the conventional orthogonal channel approach and the recent heuristic CA algorithms using POC. The proposed algorithm is shown to achieve near-optimal performance in the average case. In addition, the upper bound Price of Anarchy for Multi-Radio Multi-Channel (MRMC) networks is derived to evaluate the effectiveness of the proposed approach.