Best-Response Dynamics in Tullock Contests with Convex Costs
Abstract
We study the convergence of best-response dynamics in Tullock contests with convex cost functions (these games always have a unique pure-strategy Nash equilibrium). We show that best-response dynamics rapidly converges to the equilibrium for homogeneous agents. For two homogeneous agents, we show convergence to an -approximate equilibrium in steps. For agents, the dynamics is not unique because at each step agents can make non-trivial moves. We consider the model proposed by Ghosh and Goldberg (2023), where the agent making the move is randomly selected at each time step. We show convergence to an -approximate equilibrium in steps with probability , where is a parameter of the agent selection process, e.g., if agents are selected uniformly at random at each time step. We complement this result with a lower bound of applicable for any agent selection process.
Keywords
Cite
@article{arxiv.2310.03528,
title = {Best-Response Dynamics in Tullock Contests with Convex Costs},
author = {Abheek Ghosh},
journal= {arXiv preprint arXiv:2310.03528},
year = {2023}
}
Comments
43 pages. WINE '23 version