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Fault Tolerant Equilibria in Anonymous Games: best response correspondences and fixed points

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  • Deepanshu Vasal
  • Randall Berry

Abstract

The notion of fault tolerant Nash equilibria has been introduced as a way of studying the robustness of Nash equilibria. Under this notion, a fixed number of players are allowed to exhibit faulty behavior in which they may deviate arbitrarily from an equilibrium strategy. A Nash equilibrium in a game with $N$ players is said to be $\alpha$-tolerant if no non-faulty user wants to deviate from an equilibrium strategy as long as $N-\alpha-1$ other players are playing the equilibrium strategies, i.e., it is robust to deviations from rationality by $\alpha$ faulty players. In prior work, $\alpha$-tolerance has been largely viewed as a property of a given Nash equilibria. Here, instead we consider following Nash's approach for showing the existence of equilibria, namely, through the use of best response correspondences and fixed-point arguments. In this manner, we provide sufficient conditions for the existence an $\alpha$-tolerant equilibrium. This involves first defining an $\alpha$-tolerant best response correspondence. Given a strategy profile of non-faulty agents, this correspondence contains strategies for a non-faulty player that are a best response given any strategy profile of the faulty players. We prove that if this correspondence is non-empty, then it is upper-hemi-continuous. This enables us to apply Kakutani's fixed-point theorem and argue that if this correspondence is non-empty for every strategy profile of the non-faulty players then there exists an $\alpha$-tolerant equilibrium. However, we also illustrate by examples, that in many games this best response correspondence will be empty for some strategy profiles even though $\alpha$-tolerant equilibira still exist.

Suggested Citation

  • Deepanshu Vasal & Randall Berry, 2020. "Fault Tolerant Equilibria in Anonymous Games: best response correspondences and fixed points," Papers 2005.06812, arXiv.org, revised May 2022.
  • Handle: RePEc:arx:papers:2005.06812
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    1. Efe A. Ok, 2007. "Preliminaries of Real Analysis, from Real Analysis with Economic Applications," Introductory Chapters, in: Real Analysis with Economic Applications, Princeton University Press.
    2. Kfir Eliaz, 2002. "Fault Tolerant Implementation," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 69(3), pages 589-610.
    3. Blonski, Matthias, 1999. "Anonymous Games with Binary Actions," Games and Economic Behavior, Elsevier, vol. 28(2), pages 171-180, August.
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    Cited by:

    1. Deepanshu Vasal, 2020. "Existence of structured perfect Bayesian equilibrium in dynamic games of asymmetric information," Papers 2005.05586, arXiv.org, revised May 2020.

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