Equilibrium selection via Optimal transport
Optimization and Control
2017-07-26 v3
Abstract
We propose a new dynamics for equilibrium selection of finite player discrete strategy games. The dynamics is motivated by optimal transportation, and models individual players' myopicity, greedy and uncertainty when making decisions. The stationary measure of the dynamics provides each pure Nash equilibrium a probability by which it is ranked. For potential games, its dynamical properties are characterized by entropy and Fisher information.
Cite
@article{arxiv.1703.08442,
title = {Equilibrium selection via Optimal transport},
author = {Shui-Nee Chow and Wuchen Li and Jun Lu and Haomin Zhou},
journal= {arXiv preprint arXiv:1703.08442},
year = {2017}
}
Comments
Game theory; Optimal transport; Gradient flow; Gibbs measure; Entropy; Fisher information