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Approximating Nash Equilibria In Nonzero-Sum Games

Author

Listed:
  • EITAN ALTMAN

    (INRIA, BP93, 06902 Sophia Antipolis, France)

  • ODILE POURTALLIER

    (INRIA, BP93, 06902 Sophia Antipolis, France)

  • ALAIN HAURIE

    (Logilab-HEC, University of Geneva, 40 Blvd. du Pont-d'Arve CH-1211 Geneva 4, Switzerland)

  • FRANCESCO MORESINO

    (Logilab-HEC, University of Geneva, 40 Blvd. du Pont-d'Arve CH-1211 Geneva 4, Switzerland;
    Cambridge University, UK)

Abstract

This paper deals with the approximation of Nash equilibria inm-player games. We present conditions under which an approximating sequence of games admits near-equilibria that approximate near-equilibria in the limit game. We apply the results to two classes of games: (i) a duopoly game approximated by a sequence of matrix games, and (ii) a stochastic game played under theS-adapted information structure approximated by games played over a sampled event tree. Numerical illustrations show the usefulness of this approximation theory.

Suggested Citation

  • Eitan Altman & Odile Pourtallier & Alain Haurie & Francesco Moresino, 2000. "Approximating Nash Equilibria In Nonzero-Sum Games," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 2(02n03), pages 155-172.
    • Handle: RePEc:wsi:igtrxx:v:02:y:2000:i:02n03:n:s0219198900000123
    DOI: 10.1142/S0219198900000123
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    Citations

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    Cited by:

    1. Simone Balmelli & Francesco Moresino, 2023. "Coordination of Plug-In Electric Vehicle Charging in a Stochastic Framework: A Decentralized Tax/Incentive-Based Mechanism to Reach Global Optimality," Mathematics, MDPI, vol. 11(4), pages 1-24, February.
    2. Francisco Facchinei & Christian Kanzow, 2010. "Generalized Nash Equilibrium Problems," Annals of Operations Research, Springer, vol. 175(1), pages 177-211, March.

    More about this item

    JEL classification:

    • B4 - Schools of Economic Thought and Methodology - - Economic Methodology
    • C0 - Mathematical and Quantitative Methods - - General
    • C6 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling
    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
    • D5 - Microeconomics - - General Equilibrium and Disequilibrium
    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • M2 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics

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