Consistent Conjectural Variations Equilibrium: Characterization & Stability for a Class of Continuous Games
Computer Science and Game Theory
2023-06-07 v2
Abstract
Leveraging tools from the study of linear fractional transformations and algebraic Riccati equations, a local characterization of consistent conjectural variations equilibrium is given for two player games on continuous action spaces with costs approximated by quadratic functions. A discrete time dynamical system in the space of conjectures is derived, a solution method for computing fixed points of these dynamics (equilibria) is given, local stability properties of the dynamics around the equilibria are characterized, and conditions are given that guarantee a unique stable equilibrium.
Keywords
Cite
@article{arxiv.2305.11866,
title = {Consistent Conjectural Variations Equilibrium: Characterization & Stability for a Class of Continuous Games},
author = {Daniel J. Calderone and Benjamin J. Chasnov and Samuel A. Burden and Lillian J. Ratliff},
journal= {arXiv preprint arXiv:2305.11866},
year = {2023}
}