Abstract

We calculate the frequency of games with a unique pure strategy Nash equilibrium in the ensemble of n-player, m-strategy normal-form games. To obtain the ensemble, we generate payoff matrices at random. Games with a unique pure strategy Nash equilibrium converge to the Nash equilibrium. We then consider a wider class of games that converge under a best-response dynamic, in which each player chooses their optimal pure strategy successively. We show that the frequency of convergent games with a given number of pure Nash equilibria goes to zero as the number of players or the number of strategies goes to infinity. In the 2-player case, we show that for large games with at least 10 strategies, convergent games with multiple pure strategy Nash equilibria are more likely than games with a unique Nash equilibrium. Our novel approach uses an n-partite graph to describe games.

Highlights

  • A Nash equilibrium in a normal-form game is a strategy profile such that, given the choice of the other players, no player has an incentive to make a different choice

  • If the Nash equilibrium is in pure strategies, we call it pure strategy Nash equilibrium (PSNE), otherwise mixed strategy Nash equilibrium (MSNE)

  • We describe such games by an n-partite graph with each node corresponding to a pure strategy profile of the strategy choices of all but one player, and each edge corresponding to the optimal strategy choice

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Summary

Introduction

A Nash equilibrium in a normal-form game is a strategy profile such that, given the choice of the other players, no player has an incentive to make a different choice. Dynamic Games and Applications number of players and strategies has at least one MSNE (Nash [15,16]). This is not the case for PSNEs. Consider an n-player, m-strategy normal-form game and assume that players choose their optimal strategy (facing previous optimal strategies of the opponents) in a clockwork sequence—player 1 goes first, player 2, etc. We call a game convergent, if starting from any initial strategy profile no player changes their strategy under the described dynamic after a sufficiently large number of turns

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