Computing Correlated Equilibrium and Succinct Representation of Games
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Repeated Games
6.254 : Game Theory with Engineering Applications Lecture 15: Repeated Games Asu Ozdaglar MIT April 1, 2010 1 Game Theory: Lecture 15 Introduction Outline Repeated Games (perfect monitoring) The problem of cooperation Finitely-repeated prisoner's dilemma Infinitely-repeated games and cooperation Folk Theorems Reference: Fudenberg and Tirole, Section 5.1. 2 Game Theory: Lecture 15 Introduction Prisoners' Dilemma How to sustain cooperation in the society? Recall the prisoners' dilemma, which is the canonical game for understanding incentives for defecting instead of cooperating. Cooperate Defect Cooperate 1, 1 −1, 2 Defect 2, −1 0, 0 Recall that the strategy profile (D, D) is the unique NE. In fact, D strictly dominates C and thus (D, D) is the dominant equilibrium. In society, we have many situations of this form, but we often observe some amount of cooperation. Why? 3 Game Theory: Lecture 15 Introduction Repeated Games In many strategic situations, players interact repeatedly over time. Perhaps repetition of the same game might foster cooperation. By repeated games, we refer to a situation in which the same stage game (strategic form game) is played at each date for some duration of T periods. Such games are also sometimes called \supergames". We will assume that overall payoff is the sum of discounted payoffs at each stage. Future payoffs are discounted and are thus less valuable (e.g., money and the future is less valuable than money now because of positive interest rates; consumption in the future is less valuable than consumption now because of time preference). We will see in this lecture how repeated play of the same strategic game introduces new (desirable) equilibria by allowing players to condition their actions on the way their opponents played in the previous periods. -
Game-Based Verification and Synthesis
Downloaded from orbit.dtu.dk on: Sep 30, 2021 Game-based verification and synthesis Vester, Steen Publication date: 2016 Document Version Publisher's PDF, also known as Version of record Link back to DTU Orbit Citation (APA): Vester, S. (2016). Game-based verification and synthesis. Technical University of Denmark. DTU Compute PHD-2016 No. 414 General rights Copyright and moral rights for the publications made accessible in the public portal are retained by the authors and/or other copyright owners and it is a condition of accessing publications that users recognise and abide by the legal requirements associated with these rights. Users may download and print one copy of any publication from the public portal for the purpose of private study or research. You may not further distribute the material or use it for any profit-making activity or commercial gain You may freely distribute the URL identifying the publication in the public portal If you believe that this document breaches copyright please contact us providing details, and we will remove access to the work immediately and investigate your claim. Ph.D. Thesis Doctor of Philosophy Game-based verification and synthesis Steen Vester Kongens Lyngby, Denmark 2016 PHD-2016-414 ISSN: 0909-3192 DTU Compute Department of Applied Mathematics and Computer Science Technical University of Denmark Richard Petersens Plads Building 324 2800 Kongens Lyngby, Denmark Phone +45 4525 3031 [email protected] www.compute.dtu.dk Summary Infinite-duration games provide a convenient way to model distributed, reactive and open systems in which several entities and an uncontrollable environment interact. -
Scenario Analysis Normal Form Game
Overview Economics 3030 I. Introduction to Game Theory Chapter 10 II. Simultaneous-Move, One-Shot Games Game Theory: III. Infinitely Repeated Games Inside Oligopoly IV. Finitely Repeated Games V. Multistage Games 1 2 Normal Form Game A Normal Form Game • A Normal Form Game consists of: n Players Player 2 n Strategies or feasible actions n Payoffs Strategy A B C a 12,11 11,12 14,13 b 11,10 10,11 12,12 Player 1 c 10,15 10,13 13,14 3 4 Normal Form Game: Normal Form Game: Scenario Analysis Scenario Analysis • Suppose 1 thinks 2 will choose “A”. • Then 1 should choose “a”. n Player 1’s best response to “A” is “a”. Player 2 Player 2 Strategy A B C a 12,11 11,12 14,13 Strategy A B C b 11,10 10,11 12,12 a 12,11 11,12 14,13 Player 1 11,10 10,11 12,12 c 10,15 10,13 13,14 b Player 1 c 10,15 10,13 13,14 5 6 1 Normal Form Game: Normal Form Game: Scenario Analysis Scenario Analysis • Suppose 1 thinks 2 will choose “B”. • Then 1 should choose “a”. n Player 1’s best response to “B” is “a”. Player 2 Player 2 Strategy A B C Strategy A B C a 12,11 11,12 14,13 a 12,11 11,12 14,13 b 11,10 10,11 12,12 11,10 10,11 12,12 Player 1 b c 10,15 10,13 13,14 Player 1 c 10,15 10,13 13,14 7 8 Normal Form Game Dominant Strategy • Regardless of whether Player 2 chooses A, B, or C, Scenario Analysis Player 1 is better off choosing “a”! • “a” is Player 1’s Dominant Strategy (i.e., the • Similarly, if 1 thinks 2 will choose C… strategy that results in the highest payoff regardless n Player 1’s best response to “C” is “a”. -
Survey of the Computational Complexity of Finding a Nash Equilibrium
Survey of the Computational Complexity of Finding a Nash Equilibrium Valerie Ishida 22 April 2009 1 Abstract This survey reviews the complexity classes of interest for describing the problem of finding a Nash Equilibrium, the reductions that led to the conclusion that finding a Nash Equilibrium of a game in the normal form is PPAD-complete, and the reduction from a succinct game with a nice expected utility function to finding a Nash Equilibrium in a normal form game with two players. 2 Introduction 2.1 Motivation For many years it was unknown whether a Nash Equilibrium of a normal form game could be found in polynomial time. The motivation for being able to due so is to find game solutions that people are satisfied with. Consider an entertaining game that some friends are playing. If there is a set of strategies that constitutes and equilibrium each person will probably be satisfied. Likewise if financial games such as auctions could be solved in polynomial time in a way that all of the participates were satisfied that they could not do any better given the situation, then that would be great. There has been much progress made in the last fifty years toward finding the complexity of this problem. It turns out to be a hard problem unless PPAD = FP. This survey reviews the complexity classes of interest for describing the prob- lem of finding a Nash Equilibrium, the reductions that led to the conclusion that finding a Nash Equilibrium of a game in the normal form is PPAD-complete, and the reduction from a succinct game with a nice expected utility function to finding a Nash Equilibrium in a normal form game with two players. -
Equilibrium Computation in Normal Form Games
Tutorial Overview Game Theory Refresher Solution Concepts Computational Formulations Equilibrium Computation in Normal Form Games Costis Daskalakis & Kevin Leyton-Brown Part 1(a) Equilibrium Computation in Normal Form Games Costis Daskalakis & Kevin Leyton-Brown, Slide 1 Tutorial Overview Game Theory Refresher Solution Concepts Computational Formulations Overview 1 Plan of this Tutorial 2 Getting Our Bearings: A Quick Game Theory Refresher 3 Solution Concepts 4 Computational Formulations Equilibrium Computation in Normal Form Games Costis Daskalakis & Kevin Leyton-Brown, Slide 2 Tutorial Overview Game Theory Refresher Solution Concepts Computational Formulations Plan of this Tutorial This tutorial provides a broad introduction to the recent literature on the computation of equilibria of simultaneous-move games, weaving together both theoretical and applied viewpoints. It aims to explain recent results on: the complexity of equilibrium computation; representation and reasoning methods for compactly represented games. It also aims to be accessible to those having little experience with game theory. Our focus: the computational problem of identifying a Nash equilibrium in different game models. We will also more briefly consider -equilibria, correlated equilibria, pure-strategy Nash equilibria, and equilibria of two-player zero-sum games. Equilibrium Computation in Normal Form Games Costis Daskalakis & Kevin Leyton-Brown, Slide 3 Tutorial Overview Game Theory Refresher Solution Concepts Computational Formulations Part 1: Normal-Form Games -
Repeated Games
Repeated games Felix Munoz-Garcia Strategy and Game Theory - Washington State University Repeated games are very usual in real life: 1 Treasury bill auctions (some of them are organized monthly, but some are even weekly), 2 Cournot competition is repeated over time by the same group of firms (firms simultaneously and independently decide how much to produce in every period). 3 OPEC cartel is also repeated over time. In addition, players’ interaction in a repeated game can help us rationalize cooperation... in settings where such cooperation could not be sustained should players interact only once. We will therefore show that, when the game is repeated, we can sustain: 1 Players’ cooperation in the Prisoner’s Dilemma game, 2 Firms’ collusion: 1 Setting high prices in the Bertrand game, or 2 Reducing individual production in the Cournot game. 3 But let’s start with a more "unusual" example in which cooperation also emerged: Trench warfare in World War I. Harrington, Ch. 13 −! Trench warfare in World War I Trench warfare in World War I Despite all the killing during that war, peace would occasionally flare up as the soldiers in opposing tenches would achieve a truce. Examples: The hour of 8:00-9:00am was regarded as consecrated to "private business," No shooting during meals, No firing artillery at the enemy’s supply lines. One account in Harrington: After some shooting a German soldier shouted out "We are very sorry about that; we hope no one was hurt. It is not our fault, it is that dammed Prussian artillery" But... how was that cooperation achieved? Trench warfare in World War I We can assume that each soldier values killing the enemy, but places a greater value on not getting killed. -
2.4 Finitely Repeated Games
UC Berkeley UC Berkeley Electronic Theses and Dissertations Title Three Essays on Dynamic Games Permalink https://escholarship.org/uc/item/5hm0m6qm Author Plan, Asaf Publication Date 2010 Peer reviewed|Thesis/dissertation eScholarship.org Powered by the California Digital Library University of California Three Essays on Dynamic Games By Asaf Plan A dissertation submitted in partial satisfaction of the requirements for the degree of Doctor of Philosophy in Economics in the Graduate Division of the University of California, Berkeley Committee in charge: Professor Matthew Rabin, Chair Professor Robert M. Anderson Professor Steven Tadelis Spring 2010 Abstract Three Essays in Dynamic Games by Asaf Plan Doctor of Philosophy in Economics, University of California, Berkeley Professor Matthew Rabin, Chair Chapter 1: This chapter considers a new class of dynamic, two-player games, where a stage game is continuously repeated but each player can only move at random times that she privately observes. A player’s move is an adjustment of her action in the stage game, for example, a duopolist’s change of price. Each move is perfectly observed by both players, but a foregone opportunity to move, like a choice to leave one’s price unchanged, would not be directly observed by the other player. Some adjustments may be constrained in equilibrium by moral hazard, no matter how patient the players are. For example, a duopolist would not jump up to the monopoly price absent costly incentives. These incentives are provided by strategies that condition on the random waiting times between moves; punishing a player for moving slowly, lest she silently choose not to move. -
Well-Supported Vs. Approximate Nash Equilibria: Query Complexity of Large Games∗
Well-Supported vs. Approximate Nash Equilibria: Query Complexity of Large Games∗ Xi Chen†1, Yu Cheng‡2, and Bo Tang§3 1 Columbia University, New York, USA [email protected] 2 University of Southern California, Los Angeles, USA [email protected] 3 Oxford University, Oxford, United Kingdom [email protected] Abstract In this paper we present a generic reduction from the problem of finding an -well-supported Nash equilibrium (WSNE) to that of finding an Θ()-approximate Nash equilibrium (ANE), in large games with n players and a bounded number of strategies for each player. Our reduction complements the existing literature on relations between WSNE and ANE, and can be applied to extend hardness results on WSNE to similar results on ANE. This allows one to focus on WSNE first, which is in general easier to analyze and control in hardness constructions. As an application we prove a 2Ω(n/ log n) lower bound on the randomized query complexity of finding an -ANE in binary-action n-player games, for some constant > 0. This answers an open problem posed by Hart and Nisan [23] and Babichenko [2], and is very close to the trivial upper bound of 2n. Previously for WSNE, Babichenko [2] showed a 2Ω(n) lower bound on the randomized query complexity of finding an -WSNE for some constant > 0. Our result follows directly from combining [2] and our new reduction from WSNE to ANE. 1998 ACM Subject Classification F.2 Analysis of Algorithms and Problem Complexity Keywords and phrases Equilibrium Computation, Query Complexity, Large Games Digital Object Identifier 10.4230/LIPIcs.ITCS.2017.57 1 Introduction The celebrated theorem of Nash [29] states that every finite game has an equilibrium point. -
Spring 2017 Final Exam
Spring 2017 Final Exam ECONS 424: Strategy and Game Theory Tuesday May 2, 3:10 PM - 5:10 PM Directions : Complete 5 of the 6 questions on the exam. You will have a minimum of 2 hours to complete this final exam. No notes, books, or phones may be used during the exam. Write your name, answers and work clearly on the answer paper provided. Please ask me if you have any questions. Problem 1 (20 Points) [From Lecture Slides]. Consider the following game between two competing auction houses, Christie's and Sotheby's. Each firm charges its customers a commission on the items sold. Customers view each of the auction houses as essentially identical. For this reason, which ever house charges the lowest commission charge will be the one most of the customers want to use. However, if they can cooperate they might be able to make more money without undercutting each other. The stage-game for the competition between the auction houses is shown below. Sotheby's 7% 5% 2% 7% 7, 7 1, 10 -2, 3 Christie's 5% 10, 1 4, 4 1, 2 2% 3, -2 2, 1 0, 0 (A) (2.5 points) List all pure strategy Nash equilibria of the stage-game. (B) (2.5 points) List the preferred cooperative outcome of the stage-game and determine the best payoff a player gains by unilaterally deviating from this outcome. (C) (5 points) Describe the Grim-trigger strategy for the infinitely repeated game between Sotheby's and Christie's. (D) (10 points) If both auction houses have a common discount factor 0 ≤ δ ≤ 1, find the con- dition on this discount factor that will allow the Grim-trigger strategy to be sustained as a Subgame Perfect Nash equilibrium of the infinitely repeated game. -
Succinct Counting and Progress Measures for Solving Infinite Games
Succinct Counting and Progress Measures for Solving Infinite Games Katrin Martine Dannert September 2017 Masterarbeit im Fach Mathematik vorgelegt der Fakult¨atf¨urMathematik, Informatik und Naturwissenschaften der Rheinisch-Westf¨alischen Technischen Hochschule Aachen 1. Gutachter: Prof. Dr. Erich Gr¨adel 2. Gutachter: Prof. Dr. Martin Grohe Eigenst¨andigkeitserkl¨arung Hiermit versichere ich, die Arbeit selbstst¨andigverfasst und keine anderen als die angegebenen Quellen und Hilfsmittel benutzt zu haben, alle Stellen, die w¨ortlich oder sinngem¨aßaus anderen Quellen ¨ubernommen wurden, als solche kenntlich gemacht zu haben und, dass die Arbeit in gleicher oder ¨ahnlicher Form noch keiner Pr¨ufungsbeh¨ordevorgelegt wurde. Aachen, den Katrin Dannert Contents Introduction . .4 1 Basics and Conventions 5 1.1 Conventions and Notation . .5 1.2 Basics on Games and Complexity Theory . .6 1.3 Parity Games . .8 1.4 Muller Games . 18 1.5 Streett-Rabin Games . 24 1.6 Modal µ-Calculus . 33 2 Two Quasi-Polynomial Time Algorithms for Solving Parity Games 41 2.1 Succinct Counting . 41 2.2 Succinct Progress Measures . 52 2.3 Comparing the two methods . 71 3 Solving Streett-Rabin Games in FPT 80 3.1 Succinct Counting for Streett Rabin Games with Muller Conditions . 80 3.2 Succinct Counting for Pair Conditions . 86 4 Applications to the Modal µ-Calculus 92 4.1 Solving the Model Checking Game with Succinct Counting . 92 4.2 Solving the Model Checking Game with Succinct Progress Measures . 94 Conclusion . 97 References . 98 Introduction In this Master's thesis we will take a look at infinite games and at methods for deciding their winner. -
Collusive Behaviour in Finite Repeated Games with Bonding
DIVISION OF THE HUMANITIES AND SOCIAL SCIENCES CALIFORNIA INSTITUTE OF TECHNOLOGY PASADENA. CALIFORNIA 91125 COLLUSIVE BEHAVIOUR IN FINITE REPEATED GAMES WITH BONDING ..i.c:,1\lUTf OJ: \\' )"� Mukesh Eswaran �� � University of British Columbia � !f �\"'.'. ....., 0 c:i: C" ..... -< Tracy R. Lewis � � California Institute of Technology � � University of British Columbia ,;... <.;: �t--r. ,c.;;:, � SlfALL N\�\'-� SOCIAL SCIENCE WORKING PAPER 46 6 February 1983 COLLUSIVE BEHAVIOUR IN FINITE REPEATED GAMES WITH BONDING Abstract It is well known that it is possible (even with strictly positive discounting) to obtain collusive perfect equilibria in In finite repeated games, it is not possible to enforce infinitely repeated games. However, only noncooperative perfect collusive behaviour using deterrent strategies because of the equilibria exist in finite games. Even though finite games may last "unravel! ing" of cooperative behaviour in the 1 ast period. This paper for a long time, the cooperative behaviour of the players unravels in demonstrates that under certain conditions collusion among the players the final period of play: defection from the cooperative agreement is can be maintained if they can post a bond which they must forfeit if the dominanat strategy in the last period, and backward induction they defect from the cooperative mode. We show that the incentives to renders noncooperative action the dominant strategy in all earlier cooperate increase as the period of interaction grows in that the size periods. This phenomenon of unraveling is unsatisfactory for two of the bond required to deter defection becomes arbitrarily small as reasons. First, it contradicts our intuition that cooperative the number of periods in the game increases. -
Schedule and Abstracts (PDF)
Combinatorial game Theory Jan. 9–Jan. 14 MEALS *Breakfast (Buffet): 7:00–9:30 am, Sally Borden Building, Monday–Friday *Lunch (Buffet): 11:30 am–1:30 pm, Sally Borden Building, Monday–Friday *Dinner (Buffet): 5:30–7:30 pm, Sally Borden Building, Sunday–Thursday Coffee Breaks: As per daily schedule, 2nd floor lounge, Corbett Hall *Please remember to scan your meal card at the host/hostess station in the dining room for each meal. MEETING ROOMS All lectures will be held in Max Bell 159 (Max Bell Building accessible by walkway on 2nd floor of Corbett Hall). LCD projector, overhead projectors and blackboards are available for presentations. Note that the meeting space designated for BIRS is the lower level of Max Bell, Rooms 155–159. Please respect that all other space has been contracted to other BanffCentre guests, including any Food and Beverage in those areas. SCHEDULE Sunday 16:00 Check-in begins (Front Desk - Professional Development Centre - open 24 hours) Lecture rooms available after 16:00 (if desired) 17:30–19:30 Buffet Dinner, Sally Borden Building 20:00 Informal gathering in 2nd floor lounge, Corbett Hall (if desired) Beverages and a small assortment of snacks are available on a cash honor system. Monday 7:00–8:45 Breakfast 8:45–9:00 Introduction and Welcome by BIRS Station Manager, Max Bell 159 9:00-9:10 Overview of the week’s activities 9:10-10:00 Olivier Teytaud, Monte Carlo Tree Search Methods. 10:00-10:30 Coffee 10:30-11:00 Angela Siegel, Distributive and other lattices in CGT.