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Fault Tolerant Equilibria in Anonymous Games: best response correspondences and fixed points

Theoretical Economics 2022-05-13 v2 Computer Science and Game Theory

Abstract

The notion of fault tolerant Nash equilibria has been introduced as a way of studying the robustness of Nash equilibria. Under this notion, a fixed number of players are allowed to exhibit faulty behavior in which they may deviate arbitrarily from an equilibrium strategy. A Nash equilibrium in a game with NN players is said to be α\alpha-tolerant if no non-faulty user wants to deviate from an equilibrium strategy as long as Nα1N-\alpha-1 other players are playing the equilibrium strategies, i.e., it is robust to deviations from rationality by α\alpha faulty players. In prior work, α\alpha-tolerance has been largely viewed as a property of a given Nash equilibria. Here, instead we consider following Nash's approach for showing the existence of equilibria, namely, through the use of best response correspondences and fixed-point arguments. In this manner, we provide sufficient conditions for the existence an α\alpha-tolerant equilibrium. This involves first defining an α\alpha-tolerant best response correspondence. Given a strategy profile of non-faulty agents, this correspondence contains strategies for a non-faulty player that are a best response given any strategy profile of the faulty players. We prove that if this correspondence is non-empty, then it is upper-hemi-continuous. This enables us to apply Kakutani's fixed-point theorem and argue that if this correspondence is non-empty for every strategy profile of the non-faulty players then there exists an α\alpha-tolerant equilibrium. However, we also illustrate by examples, that in many games this best response correspondence will be empty for some strategy profiles even though α\alpha-tolerant equilibira still exist.

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Cite

@article{arxiv.2005.06812,
  title  = {Fault Tolerant Equilibria in Anonymous Games: best response correspondences and fixed points},
  author = {Deepanshu Vasal and Randall Berry},
  journal= {arXiv preprint arXiv:2005.06812},
  year   = {2022}
}

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19 pages