Sufficient conditions for the existence of Nash equilibria in bimatrix games in terms of forbidden $$2 \times 2$$ 2 × 2 subgames
Endre Boros (),
Khaled Elbassioni (),
Vladimir Gurvich (),
Kazuhisa Makino () and
Vladimir Oudalov ()
Additional contact information
Endre Boros: Rutgers University
Khaled Elbassioni: Masdar Institute of Science and Technology
Vladimir Gurvich: Rutgers University
Kazuhisa Makino: Kyoto University
Vladimir Oudalov: Salient Management Company
International Journal of Game Theory, 2016, vol. 45, issue 4, No 16, 1131 pages
Abstract:
Abstract In 1964 Shapley observed that a matrix has a saddle point in pure strategies whenever every its $$2 \times 2$$ 2 × 2 submatrix has one. In contrast, a bimatrix game may have no pure strategy Nash equilibrium (NE) even when every $$2 \times 2$$ 2 × 2 subgame has one. Nevertheless, Shapley’s claim can be extended to bimatrix games as follows. We partition all $$2 \times 2$$ 2 × 2 bimatrix games into fifteen classes $$C = \{c_1, \ldots , c_{15}\}$$ C = { c 1 , … , c 15 } depending only on the preferences of two players. A subset $$t \subseteq C$$ t ⊆ C is called a NE-theorem if a bimatrix game has a NE whenever it contains no subgame from t. We suggest a method to construct all minimal (that is, strongest) NE-theorems based on the procedure of joint generation of transversal hypergraphs given by a special oracle. By this method we obtain all (six) strongest NE-theorems. Let us remark that the suggested approach, which may be called “math-pattern recognition”, is very general: it allows to characterize completely an arbitrary “target” in terms of arbitrary “attributes”.
Keywords: Matrix and bimatrix games; Saddle point; Nash equilibrium; Nash-solvability; Dual hypergraphs; Transversal hypergraphs; Dualization (search for similar items in EconPapers)
JEL-codes: C02 C62 C65 C72 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (1)
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DOI: 10.1007/s00182-015-0513-7
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