Learning efficient Nash equilibria in distributed systems

B-Tier
Journal: Games and Economic Behavior
Year: 2012
Volume: 75
Issue: 2
Pages: 882-897

Authors (2)

Pradelski, Bary S.R. (not in RePEc) Young, H. Peyton (Government of the United State...)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

An individualʼs learning rule is completely uncoupled if it does not depend directly on the actions or payoffs of anyone else. We propose a variant of log linear learning that is completely uncoupled and that selects an efficient (welfare-maximizing) pure Nash equilibrium in all generic n-person games that possess at least one pure Nash equilibrium. In games that do not have such an equilibrium, there is a simple formula that expresses the long-run probability of the various disequilibrium states in terms of two factors: (i) the sum of payoffs over all agents, and (ii) the maximum payoff gain that results from a unilateral deviation by some agent. This welfare/stability trade-off criterion provides a novel framework for analyzing the selection of disequilibrium as well as equilibrium states in n-person games.

Technical Details

RePEc Handle
repec:eee:gamebe:v:75:y:2012:i:2:p:882-897
Journal Field
Theory
Author Count
2
Added to Database
2026-01-29