a polynomial-time nash equilibrium algorithm for repeated games
With the increasing reliance on game theory as a foundation for auctions and electronic commerce, efficient algorithms for computing equilibria in multiplayer general-sum games are of great theoretical and practical interest. The computational complexity of finding a Nash equilibrium for a one-shot bimatrix game is a well known open problem. This paper treats a closely related problem, that of finding a Nash equilibrium for an average-payoff phrepeated bimatrix game, and presents a polynomial-time algorithm. Our approach draws on the "folk theorem" from game theory and shows how finite-state equilibrium strategies can be found efficiently and expressed succinctly.
nash equilibrium equilibrium algorithm repeated games game game game theory auction electronic commerce efficiency computation practical computational complexity paper strategies complexity analysis polynomial computational game theory games general timing