Quantum Games: a Review of the History, Current State, and Interpretation
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Game Theory Lecture Notes
Game Theory: Penn State Math 486 Lecture Notes Version 2.1.1 Christopher Griffin « 2010-2021 Licensed under a Creative Commons Attribution-Noncommercial-Share Alike 3.0 United States License With Major Contributions By: James Fan George Kesidis and Other Contributions By: Arlan Stutler Sarthak Shah Contents List of Figuresv Preface xi 1. Using These Notes xi 2. An Overview of Game Theory xi Chapter 1. Probability Theory and Games Against the House1 1. Probability1 2. Random Variables and Expected Values6 3. Conditional Probability8 4. The Monty Hall Problem 11 Chapter 2. Game Trees and Extensive Form 15 1. Graphs and Trees 15 2. Game Trees with Complete Information and No Chance 18 3. Game Trees with Incomplete Information 22 4. Games of Chance 24 5. Pay-off Functions and Equilibria 26 Chapter 3. Normal and Strategic Form Games and Matrices 37 1. Normal and Strategic Form 37 2. Strategic Form Games 38 3. Review of Basic Matrix Properties 40 4. Special Matrices and Vectors 42 5. Strategy Vectors and Matrix Games 43 Chapter 4. Saddle Points, Mixed Strategies and the Minimax Theorem 45 1. Saddle Points 45 2. Zero-Sum Games without Saddle Points 48 3. Mixed Strategies 50 4. Mixed Strategies in Matrix Games 53 5. Dominated Strategies and Nash Equilibria 54 6. The Minimax Theorem 59 7. Finding Nash Equilibria in Simple Games 64 8. A Note on Nash Equilibria in General 66 Chapter 5. An Introduction to Optimization and the Karush-Kuhn-Tucker Conditions 69 1. A General Maximization Formulation 70 2. Some Geometry for Optimization 72 3. -
Lecture Notes
GRADUATE GAME THEORY LECTURE NOTES BY OMER TAMUZ California Institute of Technology 2018 Acknowledgments These lecture notes are partially adapted from Osborne and Rubinstein [29], Maschler, Solan and Zamir [23], lecture notes by Federico Echenique, and slides by Daron Acemoglu and Asu Ozdaglar. I am indebted to Seo Young (Silvia) Kim and Zhuofang Li for their help in finding and correcting many errors. Any comments or suggestions are welcome. 2 Contents 1 Extensive form games with perfect information 7 1.1 Tic-Tac-Toe ........................................ 7 1.2 The Sweet Fifteen Game ................................ 7 1.3 Chess ............................................ 7 1.4 Definition of extensive form games with perfect information ........... 10 1.5 The ultimatum game .................................. 10 1.6 Equilibria ......................................... 11 1.7 The centipede game ................................... 11 1.8 Subgames and subgame perfect equilibria ...................... 13 1.9 The dollar auction .................................... 14 1.10 Backward induction, Kuhn’s Theorem and a proof of Zermelo’s Theorem ... 15 2 Strategic form games 17 2.1 Definition ......................................... 17 2.2 Nash equilibria ...................................... 17 2.3 Classical examples .................................... 17 2.4 Dominated strategies .................................. 22 2.5 Repeated elimination of dominated strategies ................... 22 2.6 Dominant strategies .................................. -
Game Theoretic Interaction and Decision: a Quantum Analysis
games Article Game Theoretic Interaction and Decision: A Quantum Analysis Ulrich Faigle 1 and Michel Grabisch 2,* 1 Mathematisches Institut, Universität zu Köln, Weyertal 80, 50931 Köln, Germany; [email protected] 2 Paris School of Economics, University of Paris I, 106-112, Bd. de l’Hôpital, 75013 Paris, France * Correspondence: [email protected]; Tel.: +33-144-07-8744 Received: 12 July 2017; Accepted: 21 October 2017; Published: 6 November 2017 Abstract: An interaction system has a finite set of agents that interact pairwise, depending on the current state of the system. Symmetric decomposition of the matrix of interaction coefficients yields the representation of states by self-adjoint matrices and hence a spectral representation. As a result, cooperation systems, decision systems and quantum systems all become visible as manifestations of special interaction systems. The treatment of the theory is purely mathematical and does not require any special knowledge of physics. It is shown how standard notions in cooperative game theory arise naturally in this context. In particular, states of general interaction systems are seen to arise as linear superpositions of pure quantum states and Fourier transformation to become meaningful. Moreover, quantum games fall into this framework. Finally, a theory of Markov evolution of interaction states is presented that generalizes classical homogeneous Markov chains to the present context. Keywords: cooperative game; decision system; evolution; Fourier transform; interaction system; measurement; quantum game 1. Introduction In an interaction system, economic (or general physical) agents interact pairwise, but do not necessarily cooperate towards a common goal. However, this model arises as a natural generalization of the model of cooperative TU games, for which already Owen [1] introduced the co-value as an assessment of the pairwise interaction of two cooperating players1. -
The Monty Hall Problem in the Game Theory Class
The Monty Hall Problem in the Game Theory Class Sasha Gnedin∗ October 29, 2018 1 Introduction Suppose you’re on a game show, and you’re given the choice of three doors: Behind one door is a car; behind the others, goats. You pick a door, say No. 1, and the host, who knows what’s behind the doors, opens another door, say No. 3, which has a goat. He then says to you, “Do you want to pick door No. 2?” Is it to your advantage to switch your choice? With these famous words the Parade Magazine columnist vos Savant opened an exciting chapter in mathematical didactics. The puzzle, which has be- come known as the Monty Hall Problem (MHP), has broken the records of popularity among the probability paradoxes. The book by Rosenhouse [9] and the Wikipedia entry on the MHP present the history and variations of the problem. arXiv:1107.0326v1 [math.HO] 1 Jul 2011 In the basic version of the MHP the rules of the game specify that the host must always reveal one of the unchosen doors to show that there is no prize there. Two remaining unrevealed doors may hide the prize, creating the illusion of symmetry and suggesting that the action does not matter. How- ever, the symmetry is fallacious, and switching is a better action, doubling the probability of winning. There are two main explanations of the paradox. One of them, simplistic, amounts to just counting the mutually exclusive cases: either you win with ∗[email protected] 1 switching or with holding the first choice. -
Stochastic Game Theory Applications for Power Management in Cognitive Networks
STOCHASTIC GAME THEORY APPLICATIONS FOR POWER MANAGEMENT IN COGNITIVE NETWORKS A thesis submitted to Kent State University in partial fulfillment of the requirements for the degree of Master of Digital Science by Sham Fung Feb 2014 Thesis written by Sham Fung M.D.S, Kent State University, 2014 Approved by Advisor , Director, School of Digital Science ii TABLE OF CONTENTS LIST OF FIGURES . vi LIST OF TABLES . vii Acknowledgments . viii Dedication . ix 1 BACKGROUND OF COGNITIVE NETWORK . 1 1.1 Motivation and Requirements . 1 1.2 Definition of Cognitive Networks . 2 1.3 Key Elements of Cognitive Networks . 3 1.3.1 Learning and Reasoning . 3 1.3.2 Cognitive Network as a Multi-agent System . 4 2 POWER ALLOCATION IN COGNITIVE NETWORKS . 5 2.1 Overview . 5 2.2 Two Communication Paradigms . 6 2.3 Power Allocation Scheme . 8 2.3.1 Interference Constraints for Primary Users . 8 2.3.2 QoS Constraints for Secondary Users . 9 2.4 Related Works on Power Management in Cognitive Networks . 10 iii 3 GAME THEORY|PRELIMINARIES AND RELATED WORKS . 12 3.1 Non-cooperative Game . 14 3.1.1 Nash Equilibrium . 14 3.1.2 Other Equilibriums . 16 3.2 Cooperative Game . 16 3.2.1 Bargaining Game . 17 3.2.2 Coalition Game . 17 3.2.3 Solution Concept . 18 3.3 Stochastic Game . 19 3.4 Other Types of Games . 20 4 GAME THEORETICAL APPROACH ON POWER ALLOCATION . 23 4.1 Two Fundamental Types of Utility Functions . 23 4.1.1 QoS-Based Game . 23 4.1.2 Linear Pricing Game . -
Incomplete Information I. Bayesian Games
Bayesian Games Debraj Ray, November 2006 Unlike the previous notes, the material here is perfectly standard and can be found in the usual textbooks: see, e.g., Fudenberg-Tirole. For the examples in these notes (except for the very last section), I draw heavily on Martin Osborne’s excellent recent text, An Introduction to Game Theory, Oxford University Press. Obviously, incomplete information games — in which one or more players are privy to infor- mation that others don’t have — has enormous applicability: credit markets / auctions / regulation of firms / insurance / bargaining /lemons / public goods provision / signaling / . the list goes on and on. 1. A Definition A Bayesian game consists of 1. A set of players N. 2. A set of states Ω, and a common prior µ on Ω. 3. For each player i a set of actions Ai and a set of signals or types Ti. (Can make actions sets depend on type realizations.) 4. For each player i, a mapping τi :Ω 7→ Ti. 5. For each player i, a vN-M payoff function fi : A × Ω 7→ R, where A is the product of the Ai’s. Remarks A. Typically, the mapping τi tells us player i’s type. The easiest case is just when Ω is the product of the Ti’s and τi is just the appropriate projection mapping. B. The prior on states need not be common, but one view is that there is no loss of generality in assuming it (simply put all differences in the prior into differences in signals and redefine the state space and si-mappings accordingly). -
(501B) Problem Set 5. Bayesian Games Suggested Solutions by Tibor Heumann
Dirk Bergemann Department of Economics Yale University Microeconomic Theory (501b) Problem Set 5. Bayesian Games Suggested Solutions by Tibor Heumann 1. (Market for Lemons) Here I ask that you work out some of the details in perhaps the most famous of all information economics models. By contrast to discussion in class, we give a complete formulation of the game. A seller is privately informed of the value v of the good that she sells to a buyer. The buyer's prior belief on v is uniformly distributed on [x; y] with 3 0 < x < y: The good is worth 2 v to the buyer. (a) Suppose the buyer proposes a price p and the seller either accepts or rejects p: If she accepts, the seller gets payoff p−v; and the buyer gets 3 2 v − p: If she rejects, the seller gets v; and the buyer gets nothing. Find the optimal offer that the buyer can make as a function of x and y: (b) Show that if the buyer and the seller are symmetrically informed (i.e. either both know v or neither party knows v), then trade takes place with probability 1. (c) Consider a simultaneous acceptance game in the model with private information as in part a, where a price p is announced and then the buyer and the seller simultaneously accept or reject trade at price p: The payoffs are as in part a. Find the p that maximizes the probability of trade. [SOLUTION] (a) We look for the subgame perfect equilibrium, thus we solve by back- ward induction. -
John Von Neumann Between Physics and Economics: a Methodological Note
Review of Economic Analysis 5 (2013) 177–189 1973-3909/2013177 John von Neumann between Physics and Economics: A methodological note LUCA LAMBERTINI∗y University of Bologna A methodological discussion is proposed, aiming at illustrating an analogy between game theory in particular (and mathematical economics in general) and quantum mechanics. This analogy relies on the equivalence of the two fundamental operators employed in the two fields, namely, the expected value in economics and the density matrix in quantum physics. I conjecture that this coincidence can be traced back to the contributions of von Neumann in both disciplines. Keywords: expected value, density matrix, uncertainty, quantum games JEL Classifications: B25, B41, C70 1 Introduction Over the last twenty years, a growing amount of attention has been devoted to the history of game theory. Among other reasons, this interest can largely be justified on the basis of the Nobel prize to John Nash, John Harsanyi and Reinhard Selten in 1994, to Robert Aumann and Thomas Schelling in 2005 and to Leonid Hurwicz, Eric Maskin and Roger Myerson in 2007 (for mechanism design).1 However, the literature dealing with the history of game theory mainly adopts an inner per- spective, i.e., an angle that allows us to reconstruct the developments of this sub-discipline under the general headings of economics. My aim is different, to the extent that I intend to pro- pose an interpretation of the formal relationships between game theory (and economics) and the hard sciences. Strictly speaking, this view is not new, as the idea that von Neumann’s interest in mathematics, logic and quantum mechanics is critical to our understanding of the genesis of ∗I would like to thank Jurek Konieczny (Editor), an anonymous referee, Corrado Benassi, Ennio Cavaz- zuti, George Leitmann, Massimo Marinacci, Stephen Martin, Manuela Mosca and Arsen Palestini for insightful comments and discussion. -
Deterministic and Stochastic Prisoner's Dilemma Games: Experiments in Interdependent Security
NBER TECHNICAL WORKING PAPER SERIES DETERMINISTIC AND STOCHASTIC PRISONER'S DILEMMA GAMES: EXPERIMENTS IN INTERDEPENDENT SECURITY Howard Kunreuther Gabriel Silvasi Eric T. Bradlow Dylan Small Technical Working Paper 341 http://www.nber.org/papers/t0341 NATIONAL BUREAU OF ECONOMIC RESEARCH 1050 Massachusetts Avenue Cambridge, MA 02138 August 2007 We appreciate helpful discussions in designing the experiments and comments on earlier drafts of this paper by Colin Camerer, Vince Crawford, Rachel Croson, Robyn Dawes, Aureo DePaula, Geoff Heal, Charles Holt, David Krantz, Jack Ochs, Al Roth and Christian Schade. We also benefited from helpful comments from participants at the Workshop on Interdependent Security at the University of Pennsylvania (May 31-June 1 2006) and at the Workshop on Innovation and Coordination at Humboldt University (December 18-20, 2006). We thank George Abraham and Usmann Hassan for their help in organizing the data from the experiments. Support from NSF Grant CMS-0527598 and the Wharton Risk Management and Decision Processes Center is gratefully acknowledged. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research. © 2007 by Howard Kunreuther, Gabriel Silvasi, Eric T. Bradlow, and Dylan Small. All rights reserved. Short sections of text, not to exceed two paragraphs, may be quoted without explicit permission provided that full credit, including © notice, is given to the source. Deterministic and Stochastic Prisoner's Dilemma Games: Experiments in Interdependent Security Howard Kunreuther, Gabriel Silvasi, Eric T. Bradlow, and Dylan Small NBER Technical Working Paper No. 341 August 2007 JEL No. C11,C12,C22,C23,C73,C91 ABSTRACT This paper examines experiments on interdependent security prisoner's dilemma games with repeated play. -
Finite Automata Capturing Winning Sequences for All Possible Variants of the PQ Penny flip Game
Preprints (www.preprints.org) | NOT PEER-REVIEWED | Posted: 30 October 2017 doi:10.20944/preprints201710.0179.v1 Peer-reviewed version available at Mathematics 2018, 6, 20; doi:10.3390/math6020020 Article Finite automata capturing winning sequences for all possible variants of the PQ penny flip game Theodore Andronikos 1*, Alla Sirokofskich 2, Kalliopi Kastampolidou 1* ID , Magdalini Varvouzou 1, Konstantinos Giannakis 1* ID , and Alexandre Singh 1 1 Ionian University, Department of Informatics, 7 Tsirigoti Square, Corfu, Greece Emails: {andronikos, c16kast, p14varv, kgiann, p13sing}@ionio.gr 2 Department of History and Philosophy of Sciences, National and Kapodistrian University of Athens, Athens, Greece Email; [email protected] * Correspondence: [email protected] and [email protected] and [email protected]; Tel.: +30 2661087712 1 Abstract: The meticulous study of finite automata has produced many important and useful results. 2 Automata are simple yet efficient finite state machines that can be utilized in a plethora of situations. 3 It comes, therefore, as no surprise that they have been used in classic game theory in order to model 4 players and their actions. Game theory has recently been influenced by ideas from the field of 5 quantum computation. As a result, quantum versions of classic games have already been introduced 6 and studied. The PQ penny flip game is a famous quantum game introduced by Meyer in 1999. In 7 this paper we investigate all possible finite games that can be played between the two players Q and 8 Picard of the original PQ game. For this purpose we establish a rigorous connection between finite 9 automata and the PQ game along with all its possible variations. -
Stochastic Games with Hidden States∗
Stochastic Games with Hidden States¤ Yuichi Yamamoto† First Draft: March 29, 2014 This Version: January 14, 2015 Abstract This paper studies infinite-horizon stochastic games in which players ob- serve noisy public information about a hidden state each period. We find that if the game is connected, the limit feasible payoff set exists and is invariant to the initial prior about the state. Building on this invariance result, we pro- vide a recursive characterization of the equilibrium payoff set and establish the folk theorem. We also show that connectedness can be replaced with an even weaker condition, called asymptotic connectedness. Asymptotic con- nectedness is satisfied for generic signal distributions, if the state evolution is irreducible. Journal of Economic Literature Classification Numbers: C72, C73. Keywords: stochastic game, hidden state, connectedness, stochastic self- generation, folk theorem. ¤The author thanks Naoki Aizawa, Drew Fudenberg, Johannes Horner,¨ Atsushi Iwasaki, Michi- hiro Kandori, George Mailath, Takeaki Sunada, and Masatoshi Tsumagari for helpful conversa- tions, and seminar participants at various places. †Department of Economics, University of Pennsylvania. Email: [email protected] 1 1 Introduction When agents have a long-run relationship, underlying economic conditions may change over time. A leading example is a repeated Bertrand competition with stochastic demand shocks. Rotemberg and Saloner (1986) explore optimal col- lusive pricing when random demand shocks are i.i.d. each period. Haltiwanger and Harrington (1991), Kandori (1991), and Bagwell and Staiger (1997) further extend the analysis to the case in which demand fluctuations are cyclic or persis- tent. One of the crucial assumptions of these papers is that demand shocks are publicly observable before firms make their decisions in each period. -
570: Minimax Sample Complexity for Turn-Based Stochastic Game
Minimax Sample Complexity for Turn-based Stochastic Game Qiwen Cui1 Lin F. Yang2 1School of Mathematical Sciences, Peking University 2Electrical and Computer Engineering Department, University of California, Los Angeles Abstract guarantees are rather rare due to complex interaction be- tween agents that makes the problem considerably harder than single agent reinforcement learning. This is also known The empirical success of multi-agent reinforce- as non-stationarity in MARL, which means when multi- ment learning is encouraging, while few theoret- ple agents alter their strategies based on samples collected ical guarantees have been revealed. In this work, from previous strategy, the system becomes non-stationary we prove that the plug-in solver approach, proba- for each agent and the improvement can not be guaranteed. bly the most natural reinforcement learning algo- One fundamental question in MBRL is that how to design rithm, achieves minimax sample complexity for efficient algorithms to overcome non-stationarity. turn-based stochastic game (TBSG). Specifically, we perform planning in an empirical TBSG by Two-players turn-based stochastic game (TBSG) is a two- utilizing a ‘simulator’ that allows sampling from agents generalization of Markov decision process (MDP), arbitrary state-action pair. We show that the em- where two agents choose actions in turn and one agent wants pirical Nash equilibrium strategy is an approxi- to maximize the total reward while the other wants to min- mate Nash equilibrium strategy in the true TBSG imize it. As a zero-sum game, TBSG is known to have and give both problem-dependent and problem- Nash equilibrium strategy [Shapley, 1953], which means independent bound.