Proximal Analytic Center Cutting Plane Algorithms for Variational Inequalities and Nash Economic Equilibrium

Abstract

In this study, we proposed proximal analytic center cutting plane algorithms for solving variational inequalities whose domains are normal regions. Our algorithms stop with a solution of the variational inequality after a finite number of iterations, or we may find a sequence that converges to the solution of the variational inequality. We introduced the definition of the Nash economic equilibrium solution over a normal region and proved a sufficient condition for our Nash economic solution. An example of Nash equilibrium over a normal region is also provided. Our proximal analytic center cutting plane algorithms are constructive proofs of our Nash equilibrium problems.