Nash Equilibria, Gale Strings, and Perfect Matchings

Nash Equilibria, Gale Strings, and Perfect Matchings PDF Author: Julian Merschen
Publisher:
ISBN:
Category :
Languages : en
Pages :

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Book Description
This thesis concerns the problem 2-NASH of finding a Nash equilibrium of a bimatrix game, for the special class of so-called "hard-to-solve" bimatrix games. The term "hardto-solve" relates to the exponential running time of the famous and often used Lemke- Howson algorithm for this class of games. The games are constructed with the help of dual cyclic polytopes, where the algorithm can be expressed combinatorially via labeled bitstrings defined by the "Gale evenness condition" that characterise the vertices of these polytopes. We define the combinatorial problem "Another completely labeled Gale string" whose solutions define the Nash equilibria of any game defined by cyclic polytopes, including the games where the Lemke-Howson algorithm takes exponential time. We show that "Another completely labeled Gale string" is solvable in polynomial time by a reduction to the "Perfect matching" problem in Euler graphs. We adapt the Lemke-Howson algorithm to pivot from one perfect matching to another and show that again for a certain class of graphs this leads to exponential behaviour. Furthermore, we prove that completely labeled Gale strings and perfect matchings in Euler graphs come in pairs and that the Lemke-Howson algorithm connects two strings or matchings of opposite signs. The equivalence between Nash Equilibria of bimatrix games derived from cyclic polytopes, completely labeled Gale strings, and perfect matchings in Euler Graphs implies that counting Nash equilibria is #P-complete. Although one Nash equilibrium can be computed in polynomial time, we have not succeeded in finding an algorithm that computes a Nash equilibrium of opposite sign. However, we solve this problem for certain special cases, for example planar graphs. We illustrate the difficulties concerning a general polynomial-time algorithm for this problem by means of negative results that demonstrate why a number of approaches towards such an algorithm are unlikely to be successful.

Nash Equilibria, Gale Strings, and Perfect Matchings

Nash Equilibria, Gale Strings, and Perfect Matchings PDF Author: Julian Merschen
Publisher:
ISBN:
Category :
Languages : en
Pages :

Get Book Here

Book Description
This thesis concerns the problem 2-NASH of finding a Nash equilibrium of a bimatrix game, for the special class of so-called "hard-to-solve" bimatrix games. The term "hardto-solve" relates to the exponential running time of the famous and often used Lemke- Howson algorithm for this class of games. The games are constructed with the help of dual cyclic polytopes, where the algorithm can be expressed combinatorially via labeled bitstrings defined by the "Gale evenness condition" that characterise the vertices of these polytopes. We define the combinatorial problem "Another completely labeled Gale string" whose solutions define the Nash equilibria of any game defined by cyclic polytopes, including the games where the Lemke-Howson algorithm takes exponential time. We show that "Another completely labeled Gale string" is solvable in polynomial time by a reduction to the "Perfect matching" problem in Euler graphs. We adapt the Lemke-Howson algorithm to pivot from one perfect matching to another and show that again for a certain class of graphs this leads to exponential behaviour. Furthermore, we prove that completely labeled Gale strings and perfect matchings in Euler graphs come in pairs and that the Lemke-Howson algorithm connects two strings or matchings of opposite signs. The equivalence between Nash Equilibria of bimatrix games derived from cyclic polytopes, completely labeled Gale strings, and perfect matchings in Euler Graphs implies that counting Nash equilibria is #P-complete. Although one Nash equilibrium can be computed in polynomial time, we have not succeeded in finding an algorithm that computes a Nash equilibrium of opposite sign. However, we solve this problem for certain special cases, for example planar graphs. We illustrate the difficulties concerning a general polynomial-time algorithm for this problem by means of negative results that demonstrate why a number of approaches towards such an algorithm are unlikely to be successful.

Game Theory, Alive

Game Theory, Alive PDF Author: Anna R. Karlin
Publisher: American Mathematical Soc.
ISBN: 1470419823
Category : Mathematics
Languages : en
Pages : 400

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Book Description
We live in a highly connected world with multiple self-interested agents interacting and myriad opportunities for conflict and cooperation. The goal of game theory is to understand these opportunities. This book presents a rigorous introduction to the mathematics of game theory without losing sight of the joy of the subject. This is done by focusing on theoretical highlights (e.g., at least six Nobel Prize winning results are developed from scratch) and by presenting exciting connections of game theory to other fields such as computer science (algorithmic game theory), economics (auctions and matching markets), social choice (voting theory), biology (signaling and evolutionary stability), and learning theory. Both classical topics, such as zero-sum games, and modern topics, such as sponsored search auctions, are covered. Along the way, beautiful mathematical tools used in game theory are introduced, including convexity, fixed-point theorems, and probabilistic arguments. The book is appropriate for a first course in game theory at either the undergraduate or graduate level, whether in mathematics, economics, computer science, or statistics. The importance of game-theoretic thinking transcends the academic setting—for every action we take, we must consider not only its direct effects, but also how it influences the incentives of others.

Twenty Lectures on Algorithmic Game Theory

Twenty Lectures on Algorithmic Game Theory PDF Author: Tim Roughgarden
Publisher: Cambridge University Press
ISBN: 1316781178
Category : Computers
Languages : en
Pages : 356

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Book Description
Computer science and economics have engaged in a lively interaction over the past fifteen years, resulting in the new field of algorithmic game theory. Many problems that are central to modern computer science, ranging from resource allocation in large networks to online advertising, involve interactions between multiple self-interested parties. Economics and game theory offer a host of useful models and definitions to reason about such problems. The flow of ideas also travels in the other direction, and concepts from computer science are increasingly important in economics. This book grew out of the author's Stanford University course on algorithmic game theory, and aims to give students and other newcomers a quick and accessible introduction to many of the most important concepts in the field. The book also includes case studies on online advertising, wireless spectrum auctions, kidney exchange, and network management.

Game Theory Basics

Game Theory Basics PDF Author: Bernhard von Stengel
Publisher: Cambridge University Press
ISBN: 1108843301
Category : Business & Economics
Languages : en
Pages : 375

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Book Description
A lively introduction to Game Theory, ideal for students in mathematics, computer science, or economics.

Prediction, Learning, and Games

Prediction, Learning, and Games PDF Author: Nicolo Cesa-Bianchi
Publisher: Cambridge University Press
ISBN: 113945482X
Category : Computers
Languages : en
Pages : 4

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Book Description
This important text and reference for researchers and students in machine learning, game theory, statistics and information theory offers a comprehensive treatment of the problem of predicting individual sequences. Unlike standard statistical approaches to forecasting, prediction of individual sequences does not impose any probabilistic assumption on the data-generating mechanism. Yet, prediction algorithms can be constructed that work well for all possible sequences, in the sense that their performance is always nearly as good as the best forecasting strategy in a given reference class. The central theme is the model of prediction using expert advice, a general framework within which many related problems can be cast and discussed. Repeated game playing, adaptive data compression, sequential investment in the stock market, sequential pattern analysis, and several other problems are viewed as instances of the experts' framework and analyzed from a common nonstochastic standpoint that often reveals new and intriguing connections.

Combinatorial Auctions

Combinatorial Auctions PDF Author: Peter C. Cramton
Publisher: MIT Press (MA)
ISBN:
Category : Business & Economics
Languages : en
Pages : 678

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Book Description
A synthesis of theoretical and practical research on combinatorial auctions from the perspectives of economics, operations research, and computer science.

Probability, Decisions and Games

Probability, Decisions and Games PDF Author: Abel Rodríguez
Publisher: John Wiley & Sons
ISBN: 1119302609
Category : Mathematics
Languages : en
Pages : 234

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Book Description
INTRODUCES THE FUNDAMENTALS OF PROBABILITY, STATISTICS, DECISION THEORY, AND GAME THEORY, AND FEATURES INTERESTING EXAMPLES OF GAMES OF CHANCE AND STRATEGY TO MOTIVATE AND ILLUSTRATE ABSTRACT MATHEMATICAL CONCEPTS Covering both random and strategic games, Probability, Decisions and Games features a variety of gaming and gambling examples to build a better understanding of basic concepts of probability, statistics, decision theory, and game theory. The authors present fundamental concepts such as random variables, rational choice theory, mathematical expectation and variance, fair games, combinatorial calculus, conditional probability, Bayes Theorem, Bernoulli trials, zero-sum games and Nash equilibria, as well as their application in games such as Roulette, Craps, Lotto, Blackjack, Poker, Rock-Paper-Scissors, the Game of Chicken and Tic-Tac-Toe. Computer simulations, implemented using the popular R computing environment, are used to provide intuition on key concepts and verify complex calculations. The book starts by introducing simple concepts that are carefully motivated by the same historical examples that drove their original development of the field of probability, and then applies those concepts to popular contemporary games. The first two chapters of Probability, Decisions and Games: A Gentle Introduction using R feature an introductory discussion of probability and rational choice theory in finite and discrete spaces that builds upon the simple games discussed in the famous correspondence between Blaise Pascal and Pierre de Fermat. Subsequent chapters utilize popular casino games such as Roulette and Blackjack to expand on these concepts illustrate modern applications of these methodologies. Finally, the book concludes with discussions on game theory using a number of strategic games. This book: · Features introductory coverage of probability, statistics, decision theory and game theory, and has been class-tested at University of California, Santa Cruz for the past six years · Illustrates basic concepts in probability through interesting and fun examples using a number of popular casino games: roulette, lotto, craps, blackjack, and poker · Introduces key ideas in game theory using classic games such as Rock-Paper-Scissors, Chess, and Tic-Tac-Toe. · Features computer simulations using R throughout in order to illustrate complex concepts and help readers verify complex calculations · Contains exercises and approaches games and gambling at a level that is accessible for readers with minimal experience · Adopts a unique approach by motivating complex concepts using first simple games and then moving on to more complex, well-known games that illustrate how these concepts work together Probability, Decisions and Games: A Gentle Introduction using R is a unique and helpful textbook for undergraduate courses on statistical reasoning, introduction to probability, statistical literacy, and quantitative reasoning for students from a variety of disciplines. ABEL RODRÍGUEZ, PhD, is Professor in the Department of Applied Mathematics and Statistics at the University of California, Santa Cruz (UCSC), CA, USA. The author of 40 journal articles, his research interests include Bayesian nonparametric methods, machine learning, spatial temporal models, network models, and extreme value theory. BRUNO MENDES, PhD, is Lecturer in the Department of Applied Mathematics and Statistics at the University of California, Santa Cruz, CA, USA. BRUNO MENDES, PhD, is Lecturer in the Department of Applied Mathematics and Statistics at the University of California, Santa Cruz, CA, USA.INTRODUCES THE FUNDAMENTALS OF PROBABILITY, STATISTICS, DECISION THEORY, AND GAME THEORY, AND FEATURES INTERESTING EXAMPLES OF GAMES OF CHANCE AND STRATEGY TO MOTIVATE AND ILLUSTRATE ABSTRACT MATHEMATICAL CONCEPTS Covering both random and strategic games, Probability, Decisions and Games features a variety of gaming and gambling examples to build a better understanding of basic concepts of probability, statistics, decision theory, and game theory. The authors present fundamental concepts such as random variables, rational choice theory, mathematical expectation and variance, fair games, combinatorial calculus, conditional probability, Bayes Theorem, Bernoulli trials, zero-sum games and Nash equilibria, as well as their application in games such as Roulette, Craps, Lotto, Blackjack, Poker, Rock-Paper-Scissors, the Game of Chicken and Tic-Tac-Toe. Computer simulations, implemented using the popular R computing environment, are used to provide intuition on key concepts and verify complex calculations. The book starts by introducing simple concepts that are carefully motivated by the same historical examples that drove their original development of the field of probability, and then applies those concepts to popular contemporary games. The first two chapters of Probability, Decisions and Games: A Gentle Introduction using R feature an introductory discussion of probability and rational choice theory in finite and discrete spaces that builds upon the simple games discussed in the famous correspondence between Blaise Pascal and Pierre de Fermat. Subsequent chapters utilize popular casino games such as Roulette and Blackjack to expand on these concepts illustrate modern applications of these methodologies. Finally, the book concludes with discussions on game theory using a number of strategic games. This book: • Features introductory coverage of probability, statistics, decision theory and game theory, and has been class-tested at University of California, Santa Cruz for the past six years • Illustrates basic concepts in probability through interesting and fun examples using a number of popular casino games: roulette, lotto, craps, blackjack, and poker • Introduces key ideas in game theory using classic games such as Rock-Paper-Scissors, Chess, and Tic-Tac-Toe. • Features computer simulations using R throughout in order to illustrate complex concepts and help readers verify complex calculations • Contains exercises and approaches games and gambling at a level that is accessible for readers with minimal experience • Adopts a unique approach by motivating complex concepts using first simple games and then moving on to more complex, well-known games that illustrate how these concepts work together Probability, Decisions and Games: A Gentle Introduction using R is a unique and helpful textbook for undergraduate courses on statistical reasoning, introduction to probability, statistical literacy, and quantitative reasoning for students from a variety of disciplines. ABEL RODRÍGUEZ, PhD, is Professor in the Department of Applied Mathematics and Statistics at the University of California, Santa Cruz (UCSC), CA, USA. The author of 40 journal articles, his research interests include Bayesian nonparametric methods, machine learning, spatial temporal models, network models, and extreme value theory. BRUNO MENDES, PhD, is Lecturer in the Department of Applied Mathematics and Statistics at the University of California, Santa Cruz, CA, USA.

The Shape of Inner Space

The Shape of Inner Space PDF Author: Shing-Tung Yau
Publisher: Il Saggiatore
ISBN: 0465020232
Category : Mathematics
Languages : en
Pages : 398

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Book Description
The leading mind behind the mathematics of string theory discusses how geometry explains the universe we see. Illustrations.

Recursive Macroeconomic Theory

Recursive Macroeconomic Theory PDF Author: Lars Ljungqvist
Publisher: MIT Press
ISBN: 9780262122740
Category : Business & Economics
Languages : en
Pages : 1120

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Book Description
A significant new edition of a text that offers both tools and sample applications; extensive revisions and seven new chapters improve and expand upon the original treatment.

Moral Sentiments and Material Interests

Moral Sentiments and Material Interests PDF Author: Herbert Gintis
Publisher: MIT Press
ISBN: 9780262072526
Category : Business & Economics
Languages : en
Pages : 430

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Book Description
Moral Sentiments and Material Interests presents an innovative synthesis of research in different disciplines to argue that cooperation stems not from the stereotypical selfish agent acting out of disguised self-interest but from the presence of "strong reciprocators" in a social group. Presenting an overview of research in economics, anthropology, evolutionary and human biology, social psychology, and sociology, the book deals with both the theoretical foundations and the policy implications of this explanation for cooperation. Chapter authors in the remaining parts of the book discuss the behavioral ecology of cooperation in humans and nonhuman primates, modeling and testing strong reciprocity in economic scenarios, and reciprocity and social policy. The evidence for strong reciprocity in the book includes experiments using the famous Ultimatum Game (in which two players must agree on how to split a certain amount of money or they both get nothing.)