IDEAS home Printed from https://ideas.repec.org/p/arx/papers/2607.21805.html

Natural Invariant Measures for Chaotic Game Dynamics: Finding Order in Chaos

Author

Listed:
  • Jakub Bielawski
  • Thiparat Chotibut
  • Fryderyk Falniowski
  • Micha{l} Misiurewicz
  • Georgios Piliouras

Abstract

We study the long-term behavior of the Multiplicative Weights Update (MWU) algorithm in game settings where learning dynamics frequently fail to converge to Nash equilibria and instead exhibit Li-Yorke chaos. While such chaos precludes the prediction of specific long-term strategy profiles, it does not imply a lack of statistical structure. We demonstrate that natural invariant measures - a fundamental concept from ergodic theory - provide the rigorous framework necessary to find order within this chaos. Focusing on a two-strategy congestion game, we prove that these measures allow for a comprehensive statistical characterization of the dynamics. Crucially, we show that this framework extends beyond simple strategy frequencies to \emph{general observables}, enabling the precise calculation of long-term time averages for broad classes of economic metrics - including payoffs, social cost, and regret - despite chaos. Our results reveal that this simple learning algorithm captures the full spectrum of behaviors found in one-dimensional dynamical systems, from unique or multiple absolutely continuous invariant measures to complex periodic attractors as well as coexisting chaotic and stable (periodic) behaviors. By bridging game theory and dynamical systems, we show that statistical predictability is attainable even in the absence of pointwise convergence.

Suggested Citation

  • Jakub Bielawski & Thiparat Chotibut & Fryderyk Falniowski & Micha{l} Misiurewicz & Georgios Piliouras, 2026. "Natural Invariant Measures for Chaotic Game Dynamics: Finding Order in Chaos," Papers 2607.21805, arXiv.org.
  • Handle: RePEc:arx:papers:2607.21805
    as

    Download full text from publisher

    File URL: https://arxiv.org/pdf/2607.21805
    File Function: Latest version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Timo Klein, 2021. "Autonomous algorithmic collusion: Q‐learning under sequential pricing," RAND Journal of Economics, RAND Corporation, vol. 52(3), pages 538-558, September.
    2. Emilio Calvano & Giacomo Calzolari & Vincenzo Denicolò & Sergio Pastorello, 2020. "Artificial Intelligence, Algorithmic Pricing, and Collusion," American Economic Review, American Economic Association, vol. 110(10), pages 3267-3297, October.
    3. Fryderyk Falniowski & Panayotis Mertikopoulos, 2025. "On the discrete-time origins of the replicator dynamics: from convergence to instability and chaos," International Journal of Game Theory, Springer;Game Theory Society, vol. 54(1), pages 1-29, June.
    4. David Levy, 1994. "Chaos theory and strategy: Theory, application, and managerial implications," Strategic Management Journal, Wiley Blackwell, vol. 15(S2), pages 167-178, June.
    5. J. Doyne Farmer & Duncan Foley, 2009. "The economy needs agent-based modelling," Nature, Nature, vol. 460(7256), pages 685-686, August.
    6. Telmo Peixe & Alexandre A. Rodrigues, 2021. "Persistent Strange attractors in 3D Polymatrix Replicators," Papers 2103.11242, arXiv.org, revised Jan 2022.
    7. Arthur, W Brian, 1994. "Inductive Reasoning and Bounded Rationality," American Economic Review, American Economic Association, vol. 84(2), pages 406-411, May.
    8. W. Brian Arthur, 1994. "Inductive Reasoning, Bounded Rationality and the Bar Problem," Working Papers 94-03-014, Santa Fe Institute.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Marco Catola & Silvia Leoni, 2025. "Pollution Abatement and Lobbying in a Cournot Game: An Agent-Based Modelling Approach," Computational Economics, Springer;Society for Computational Economics, vol. 65(2), pages 637-664, February.
    2. Delli Gatti,Domenico & Fagiolo,Giorgio & Gallegati,Mauro & Richiardi,Matteo & Russo,Alberto (ed.), 2018. "Agent-Based Models in Economics," Cambridge Books, Cambridge University Press, number 9781108400046.
    3. Nan Lu, 2018. "La modélisation de l’indice CAC 40 avec un modèle basé agent," Erudite Ph.D Dissertations, Erudite, number ph18-02 edited by François Legendre, June.
    4. Adão, Luiz F.S. & Silveira, Douglas & Ely, Regis A. & Cajueiro, Daniel O., 2022. "The impacts of interest rates on banks’ loan portfolio risk-taking," Journal of Economic Dynamics and Control, Elsevier, vol. 144(C).
    5. Lucas Fievet & Didier Sornette, 2018. "Calibrating emergent phenomena in stock markets with agent based models," PLOS ONE, Public Library of Science, vol. 13(3), pages 1-17, March.
    6. Gao-Feng Gu & Xiong Xiong & Hai-Chuan Xu & Wei Zhang & Yongjie Zhang & Wei Chen & Wei-Xing Zhou, 2021. "An empirical behavioral order-driven model with price limit rules," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 7(1), pages 1-24, December.
    7. Alderete Peralta, Ali & Balta-Ozkan, Nazmiye & Longhurst, Philip, 2022. "Spatio-temporal modelling of solar photovoltaic adoption: An integrated neural networks and agent-based modelling approach," Applied Energy, Elsevier, vol. 305(C).
    8. Howitt, Peter & Özak, Ömer, 2014. "Adaptive consumption behavior," Journal of Economic Dynamics and Control, Elsevier, vol. 39(C), pages 37-61.
    9. Michael S. Harr'e, 2018. "Multi-agent Economics and the Emergence of Critical Markets," Papers 1809.01332, arXiv.org.
    10. Cheng, Jinjun, 2026. "Value Consensus Currency A Meta-Theoretical Construction for the Leap of Human Civilization in the Post-Scarcity Era," Thesis Commons sfuqe_v1, Center for Open Science.
    11. Maria Minniti & William Bygrave, 2001. "A Dynamic Model of Entrepreneurial Learning," Entrepreneurship Theory and Practice, , vol. 25(3), pages 5-16, April.
    12. Bell, Peter N, 2013. "New Testing Procedures to Assess Market Efficiency with Trading Rules," MPRA Paper 46701, University Library of Munich, Germany.
    13. Luis Alfonso Dau & Aya S. Chacar & Marjorie A. Lyles & Jiatao Li, 2022. "Informal institutions and international business: Toward an integrative research agenda," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(6), pages 985-1010, August.
    14. Sergeeva, Anastasia & Bhardwaj, Akhil & Dimov, Dimo, 2021. "In the heat of the game: Analogical abduction in a pragmatist account of entrepreneurial reasoning," Journal of Business Venturing, Elsevier, vol. 36(6).
    15. Wawrzyniak, Karol & Wiślicki, Wojciech, 2012. "Mesoscopic approach to minority games in herd regime," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 391(5), pages 2056-2082.
    16. Scott C. Linn & Nicholas S. P. Tay, 2007. "Complexity and the Character of Stock Returns: Empirical Evidence and a Model of Asset Prices Based on Complex Investor Learning," Management Science, INFORMS, vol. 53(7), pages 1165-1180, July.
    17. Alan Kirman & François Laisney & Paul Pezanis-Christou, 2023. "Relaxing the symmetry assumption in participation games: a specification test for cluster-heterogeneity," Experimental Economics, Springer;Economic Science Association, vol. 26(4), pages 850-878, September.
    18. Shengyu Cao & Ming Hu, 2026. "Supracompetitive Pricing Under AI Monoculture," Papers 2601.01279, arXiv.org, revised Jun 2026.
    19. Andrew W. Bausch, 2014. "Evolving intergroup cooperation," Computational and Mathematical Organization Theory, Springer, vol. 20(4), pages 369-393, December.
    20. Agnieszka Wiszniewska-Matyszkiel, 2016. "Belief distorted Nash equilibria: introduction of a new kind of equilibrium in dynamic games with distorted information," Annals of Operations Research, Springer, vol. 243(1), pages 147-177, August.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:arx:papers:2607.21805. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: arXiv administrators (email available below). General contact details of provider: https://arxiv.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.