Monotone bargaining is Nash-solvable
Abstract
Given two finite ordered sets and , introduce the set of outcomes of the game . Two players, Alice and Bob, have the sets of strategies and that consist of all monotone non-decreasing mappings and , respectively. It is easily seen that each pair produces at least one {\em deal}, that is, an outcome such that and . Denote by the set of all such deals related to . The obtained mapping is a game correspondence. Choose an arbitrary deal to obtained a mapping , which is a game form. We will show that each such game form is tight and, hence, Nash-solvable, that is, for any pair of utility functions of Alice and of Bob, the obtained monotone bargaining game has at least one Nash equilibrium in pure strategies. Moreover, the same equilibrium can be chosen for all selections . We also obtain an efficient algorithm that determines such an equilibrium in time linear in , although the numbers of strategies and are exponential in . Our results show that, somewhat surprising, the players have no need to hide or randomize their bargaining strategies, even in the zero-sum case.
Cite
@article{arxiv.1711.00940,
title = {Monotone bargaining is Nash-solvable},
author = {Vladimir Gurvich and Gleb Koshevoy},
journal= {arXiv preprint arXiv:1711.00940},
year = {2017}
}
Comments
In this version we extend significantly Section 4. We add more classes of dual hypergraphs and show that for some of these classes the proof of the main theorem becomes much simpler than in general