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Best-response dynamics in two-person random games with correlated payoffs

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  • Mimun, Hlafo Alfie
  • Quattropani, Matteo
  • Scarsini, Marco

Abstract

We consider finite two-player normal form games with random payoffs. Player A's payoffs are i.i.d. from a uniform distribution. Given p∈[0,1], for any action profile, player B's payoff coincides with player A's payoff with probability p and is i.i.d. from the same uniform distribution with probability 1−p. This model interpolates the model of i.i.d. random payoff used in most of the literature and the model of random potential games. First we study the number of pure Nash equilibria in the above class of games. Then we show that, for any positive p, asymptotically in the number of available actions, best response dynamics reaches a pure Nash equilibrium with high probability.

Suggested Citation

  • Mimun, Hlafo Alfie & Quattropani, Matteo & Scarsini, Marco, 2024. "Best-response dynamics in two-person random games with correlated payoffs," Games and Economic Behavior, Elsevier, vol. 145(C), pages 239-262.
    • Handle: RePEc:eee:gamebe:v:145:y:2024:i:c:p:239-262
    DOI: 10.1016/j.geb.2024.03.011
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    Cited by:

    1. Andrea Collevecchio & Hlafo Alfie Mimun & Matteo Quattropani & Marco Scarsini, 2024. "Basins of Attraction in Two-Player Random Ordinal Potential Games," Papers 2407.05460, arXiv.org.
    2. Andrea Collevecchio & Tuan-Minh Nguyen & Ziwen Zhong, 2024. "Finding pure Nash equilibria in large random games," Papers 2406.09732, arXiv.org, revised Aug 2024.

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