Finding Normalized Equilibrium in Convex-Concave Games

International Game Theory Review, Vol. 10, No 1, pp. 37-51, 2008

Posted: 29 Oct 2009

See all articles by Sjur Didrik Flam

Sjur Didrik Flam

University of Bergen - Department of Economics

Andrzej Ruszczynski

Rutgers, The State University of New Jersey - Rutgers Business School at Newark & New Brunswick

Date Written: March 2008

Abstract

This paper considers a fairly large class of non-cooperative games in which strategies are jointly constrained. When what is called the Ky Fan or Nikaidô-Isoda function is convex-concave, selected Nash equilibria correspond to diagonal saddle points of that function. This feature is exploited to design computational algorithms for finding such equilibria.

To comply with some freedom of individual choice the algorithms developed here are fairly decentralized. However, since coupling constraints must be enforced, repeated coordination is needed while underway towards equilibrium.

Particular instances include zero-sum, two-person games - or mini-max problems - that are convex-concave and involve convex coupling constraints.

Keywords: Non-cooperative games, Nash equilibrium, joint constraints, quasi-variational inequalities, exact penalty, subgradient projection, proximal point algorithm, partial regularization, saddle points, Ky Fan or Nikaidô-Isoda functions, Subject Classification: 90C25, Subject Classification: 91A10

Suggested Citation

Flam, Sjur Didrik and Ruszczynski, Andrzej, Finding Normalized Equilibrium in Convex-Concave Games (March 2008). International Game Theory Review, Vol. 10, No 1, pp. 37-51, 2008, Available at SSRN: https://ssrn.com/abstract=1496067

Sjur Didrik Flam (Contact Author)

University of Bergen - Department of Economics ( email )

Fosswinckelsgt. 6
N-5007 Bergen, 5007
Norway

Andrzej Ruszczynski

Rutgers, The State University of New Jersey - Rutgers Business School at Newark & New Brunswick ( email )

94 Rockefeller Road
Piscataway, NJ 08854
United States

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