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Theoretical Computer Science 0 (009) 599 606 Contents lists available at ScienceDirect Theoretical Computer Science journal homepage: www.elsevier.com/locate/tcs Polynomial algorithms for approximating Nash equilibria of bimatrix games Spyros C. Kontogiannis a,c,, Panagiota N. Panagopoulou c,b, Paul G. Spirakis c,b a Computer Science Department, University of Ioannina, 50 Ioannina, Greece b Department of Computer Engineering and Informatics, University of Patra, Greece c Research Academic Computer Technology Institute, N. Kazantzaki Street, University of Patra, Rion, 6500 Patra, Greece a r t i c l e i n f o a b s t r a c t Keywords: Bimatrix game Approximate Nash equilibrium We focus on the problem of computing an ɛ-nash equilibrium of a bimatrix game, when ɛ is an absolute constant. We present a simple algorithm for computing a 3 -Nash equilibrium for any bimatrix game in strongly polynomial time and we next show how to extend this algorithm so as to obtain a (potentially stronger) parameterized approximation. Namely, we present an algorithm that computes a +λ -Nash equilibrium, where λ is the minimum, among all Nash equilibria, expected payoff of either player. The suggested algorithm runs in time polynomial in the number of strategies available to the players. 009 Elsevier B.V. All rights reserved.. Introduction.. Motivation, framework and overview Non-cooperative game theory has been extensively used in understanding the phenomena observed when decision makers interact. A game consists of a set of players, and each player has a set of strategies available to her as well as a payoff function mapping each strategy profile (i.e. each combination of strategies, one for each player) to a real number that captures the preferences of the player over the possible outcomes of the game. The most important solution concept in non-cooperative game theory is the notion of Nash equilibrium [5]: it is a strategy profile such that no player would have an incentive to unilaterally deviate from her strategy, i.e. no player could increase her payoff by choosing another strategy while the rest of the players persevered their strategies. Despite the certain existence of such equilibria [5], the problem of finding any Nash equilibrium even for games involving only two players has been recently proved to be complete in the PPAD (polynomial parity argument, directed version) class, introduced by Papadimitriou [6]. This fact led to the emergence of the computation of approximate Nash equilibria, also referred to as ɛ-nash equilibria. An ɛ-nash equilibrium is a strategy profile such that no deviating player could achieve a payoff higher than the one that the specific profile gives her, plus ɛ. In this work, we focus on the problem of approximating Nash equilibria of -player games. We propose simple and efficient algorithms for computing ɛ-nash equilibria of such games, for sufficiently small absolute constants ɛ. Partially supported by the EU within the 6th Framework Programme under contract 0596 Algorithmic Principles for Building Efficient Overlay Computers (AEOLUS), and by the General Secretariat for Research and Technology of the Greek Ministry of Development within the programme PENED 003. Corresponding author at: Computer Science Department, University of Ioannina, 50 Ioannina, Greece. E-mail addresses: kontog@cs.uoi.gr (S.C. Kontogiannis), panagopp@cti.gr (P.N. Panagopoulou), spirakis@cti.gr (P.G. Spirakis). 030-3975/$ see front matter 009 Elsevier B.V. All rights reserved. doi:0.06/j.tcs.008..033

600 S.C. Kontogiannis et al. / Theoretical Computer Science 0 (009) 599 606.. Related work Nash [5] introduced the concept of Nash equilibria in non-cooperative games and proved that any game possesses at least one such equilibrium; however, the computational complexity of finding a Nash equilibrium used to be a wide open problem for several years. A well-known algorithm for computing a Nash equilibrium of a game with players is the Lemke Howson algorithm [3], however it has exponential worst-case running time in the number of available pure strategies. A simple Las Vegas algorithm for finding a Nash equilibrium in -player random games was presented in []; this algorithm always finds an equilibrium, and it runs in polynomial time with high probability. Daskalakis et al. [7] showed that the problem of computing a Nash equilibrium in a game with or more players is PPADcomplete; this result was extended to games with 3 players [0,]. Eventually, Chen and Deng [5] proved that the problem is PPAD-complete for bimatrix games in which each player has n available pure strategies. In [], following similar techniques as in [], it was shown that, for any bimatrix game and for any constant ɛ > 0, there exists an ɛ-nash equilibrium with only logarithmic support (in the number n of available pure strategies). This result directly yields a quasi-polynomial (n O(ln n) ) algorithm for computing such an approximate equilibrium. In [6] it was shown that the problem of computing a nθ() -Nash equilibrium is PPAD-complete, and that bimatrix games are unlikely to have a fully polynomial time approximation scheme (unless PPAD P). However, it was conjectured that it is unlikely that finding an ɛ-nash equilibrium is PPAD-complete when ɛ is an absolute constant. Independently from our work, Daskalakis et al. [8] show how to compute an /-Nash equilibrium of a bimatrix game. Later, there was a series of results improving the constant for polynomial time constructions of approximate Nash equilibria. A polynomial construction (based on Linear Programming) of a 0.38-Nash equilibrium is presented in [9], and consequently Bosse et al. [3] proposed a 0.3639-Nash equilibrium based on the solvability of zero-sum bimatrix games. Finally, Tsaknakis and Spirakis [7] proposed a new methodology for determining approximate Nash equilibria of bimatrix games and based on that, they provided a polynomial time algorithm for computing 0.3393-approximate Nash equilibria. To our knowledge this is currently the best result for approximate Nash equilibria in bimatrix games. For the more demanding notion of well-supported approximate Nash equilibrium, (that is, an approximate Nash equilibrium where each player plays with positive probability only approximate best responses) Daskalakis et al. [8] propose an algorithm, which, under a graph theoretic conjecture, constructs in polynomial time a 5 -well-supported Nash 6 equilibrium. In [8] it is also shown how to transform a [0, ]-bimatrix game to a win lose bimatrix game (i.e. a bimatrix game where each matrix entry is either 0 or ) of the same size, so that each ɛ-well-supported Nash equilibrium of the resulting game is +ɛ -well-supported Nash equilibrium of the original game. The work of [] provides a polynomial algorithm that computes a -well-supported Nash equilibrium for arbitrary win lose games. The idea behind this algorithm is to split evenly the divergence from a zero-sum game between the two players and then solve this zero-sum game in polynomial time (using its direct connection to Linear Programming). The computed Nash equilibrium of the zero-sum game considered is indeed proved to be also a -well-supported Nash equilibrium for the initial win lose game. In the same work, Kontogiannis and Spirakis [] parameterize the above methodology in order to apply it to arbitrary bimatrix games. This new technique leads to a weaker φ-well-supported Nash equilibrium for win lose games, where φ = 5 is the golden ratio. Nevertheless, this parameterized technique extends nicely to a technique for arbitrary bimatrix ( ) games, which ensures a -well-supported Nash equilibrium in polynomial time..3. Our results In this work, we deal with the problem of computing an ɛ-nash equilibrium of a bimatrix game, for some constant ɛ. We first present a simple algorithm for computing a 3 -Nash equilibrium for any bimatrix game in strongly polynomial time (Lemma 3.). Next we show how to extend this result so as to obtain a parameterized and potentially stronger approximation. More specifically, we present an algorithm that computes a +λ -Nash equilibrium, where λ is the minimum, among all Nash equilibria, expected payoff of either player (Theorem.). The suggested algorithm runs in time polynomial in the number of strategies available to the players... Organization In Section we present the notation used throughout this paper, together with the definitions of bimatrix games, Nash equilibria and approximate Nash equilibria, and we formally state and discuss the results of [6,] on the problem of approximating Nash equilibria. Our first algorithm for computing a 3 -Nash equilibrium is described in Section 3, while in Section we present an extension of this algorithm that can give a stronger approximation. We conclude, in Section 5, with a discussion of our results and suggestions for further research.

S.C. Kontogiannis et al. / Theoretical Computer Science 0 (009) 599 606 60. Background.. Notation For an integer n, let [n] = {,,..., n}. For an n vector x we denote by x, x,... x n the components of x and by x T the transpose of x. For an n m matrix A, we denote a i,j the element in the ith row and jth column of A. For an n m matrix A and a constant c R, we denote ca the n m matrix resulting after multiplying each element of A by c. Let P n be the set of all probability vectors in n dimensions, i.e. { } P n x R n : x i = and x i 0 for all i [n]. Denote R n m [0:] the set of all n m matrices with real entries between 0 and, i.e. R n m [0:] { A R n m : 0 a i,j for all i [n], j [m] }... Bimatrix games A non-cooperative game Γ = N, (S i ) i N, (u i ) i N consists of (i) a finite set of players N, (ii) a non-empty finite set of pure strategies S i for each player i N and (iii) a payoff function u i : i N S i R for each player i N. Bimatrix games [,3] are a special case of -player games (i.e. N = ) such that the payoff functions can be described by two real n m matrices A and B, where n = S and m = S. More specifically, the n rows of A, B represent the pure strategies of the first player (the row player) and the m columns represent the pure strategies of the second player (the column player). Then, when the row player chooses strategy i and the column player chooses strategy j, the former gets payoff a i,j while the latter gets payoff b i,j. Based on this observation, bimatrix games are denoted by Γ = A, B. A mixed strategy for player i N is a probability distribution on the set of her pure strategies S i. In a bimatrix game Γ = A, B, a mixed strategy for the row player can be expressed as a probability vector x P n while a mixed strategy for the column player can be expressed as a probability vector y P m. When the row player chooses mixed strategy x and the column player chooses y, then the players get expected payoffs x T Ay (row player) and x T By (column player). The support of a mixed strategy is the set of pure strategies that are assigned non-zero probability..3. Nash equilibria and ɛ-nash equilibria A Nash equilibrium [5] for a game Γ is a combination of (pure or mixed) strategies, one for each player, such that no player could increase her payoff by unilaterally changing her strategy. We formally give the definition of a Nash equilibrium and an ɛ-nash equilibrium for a bimatrix game. Definition. (Nash Equilibrium). A pair of strategies ( x, ỹ) is a Nash equilibrium for the bimatrix game Γ = A, B if: (i) For every (mixed) strategy x of the row player, x T Aỹ x T Aỹ and (ii) For every (mixed) strategy y of the column player, x T By x T Bỹ. Definition. (ɛ-nash Equilibrium). For any ɛ > 0 a pair of strategies (ˆx, ŷ) is an ɛ-nash equilibrium for the bimatrix game Γ = A, B if: (i) For every (mixed) strategy x of the row player, x T Aŷ ˆx T Aŷ + ɛ, and (ii) For every (mixed) strategy y of the column player, ˆx T By ˆx T Bŷ + ɛ. Remark.3. From now on we denote by ( x, ỹ) an arbitrary Nash equilibrium of A, B and by (ˆx, ŷ) an arbitrary ɛ-nash equilibrium of A, B, for some constant ɛ > 0 that will be clear from the context... Positively normalized bimatrix games As pointed out in [6], since the notion of ɛ-nash equilibria is defined in the additive fashion, it is important to consider bimatrix games with normalized matrices so as to study their complexity. That is, the absolute value of each entry in the matrices is bounded, for example by, and there exists an entry in each matrix equal to. Lipton et al. [] also used a similar normalization, which we adopt in this paper and describe below. Consider the n m bimatrix game Γ = A, B and let c, d be two arbitrary positive real constants. Suppose that ( x, ỹ) is a Nash equilibrium for Γ and (ˆx, ŷ) is an ɛ-nash equilibrium for Γ. Let x and y be any strategy of the row and column player respectively. Now consider the game Γ = ca, db. Then it holds that x T (ca)ỹ = cx T Aỹ c xaỹ = x T (ca)ỹ and, similarly, x T (db)y x T (db)ỹ.

60 S.C. Kontogiannis et al. / Theoretical Computer Science 0 (009) 599 606 Moreover, and x T (ca)ŷ ˆx T (ca)ŷ + cɛ ˆx T (db)y ˆx T (db)ŷ + dɛ. Hence Γ and Γ have precisely the same set of Nash equilibria; furthermore, any ɛ-nash equilibrium for Γ is an lɛ-nash equilibrium for Γ (where l = max{c, d}) and vice versa. Now let C be an n m matrix such that, for all (columns) j [m], c i,j = c j R for all i [n]. Similarly, let D be an n m matrix such that, for all (rows) i [m], d i,j = d i R for all j [m]. Note that, for every pair x P n and y P m, x T Cy = c i,j x i y j = y j c j x i = c j y j and x T Dy = d i,j x i y j = x i d i y j = d i x i. Consider now the game Γ = C + A, D + B. Then, for all x P n, x T (C + A)ỹ = x T Cỹ + x T Aỹ c j ỹ j + x T Aỹ = x T (C + A)ỹ and similarly, for all y P m, x T (D + B)y x T (D + B)ỹ. Also, for all x P n it holds that x T (C + A)ŷ = x T Cŷ + x T Aŷ and similarly, for all y P m, ˆx T (D + B)y ˆx T (D + B)ŷ + ɛ. c j ŷ j + ˆx T Aŷ + ɛ = ˆx T (C + A)ŷ + ɛ Thus Γ and Γ are equivalent as regards their sets of Nash equilibria, as well as their sets of ɛ-nash equilibria. This equivalence allows us to focus only on bimatrix games where the payoffs are between 0 and, i.e. on games A, B where A, B R m n [0:]. Such games are referred to as being positively normalized [6]..5. Tractability of ɛ-nash equilibria Consider a bimatrix game Γ = A, B and let ( x, ỹ) be a Nash equilibrium for Γ. Fix a positive integer k and assume that we form a multiset S by sampling k times from the set of pure strategies of the row player, independently at random according to the distribution x. Similarly, assume we form a multiset S by sampling k times from the set of pure strategies of the column player, independently at random according to the distribution ỹ. Let ˆx be the mixed strategy for the row player that assigns probability /k to each member of S and 0 to all other pure strategies, and let ŷ be the mixed strategy for the column player that assigns probability /k to each member of S and 0 to all other pure strategies. Clearly, if a pure strategy occurs α times in the multiset, then it is assigned probability α/k. Then ˆx and ŷ are said to be k-uniform [] and the following holds: Theorem. ([]). For any Nash equilibrium ( x, ỹ) of a positively normalized n n bimatrix game and for every ɛ > 0, there exists, for every k, a pair of k-uniform strategies ˆx, ŷ such that (ˆx, ŷ) is an ɛ-nash equilibrium. However, ln n ɛ n Theorem.5 ([6]). The problem of computing a Θ() -Nash equilibrium of a positively normalized n n bimatrix game is PPADcomplete. Theorem.5 asserts that, unless PPAD P, there exists no fully polynomial time approximation scheme for computing equilibria in bimatrix games. However, this does not rule out the existence of a polynomial ( ) approximation scheme for computing an ɛ-nash equilibrium when ɛ is an absolute constant, or even when ɛ = Θ. Furthermore, as observed poly(ln n) in [6], if the problem of finding an ɛ-nash equilibrium were PPAD-complete when ɛ is an absolute constant, then, due to Theorem., all PPAD problems would be solved in quasi-polynomial time, which is unlikely to be the case. 3. A 3 -Nash equilibrium In this section we present a straightforward method for computing a 3 -Nash equilibrium for any positively normalized bimatrix game.

S.C. Kontogiannis et al. / Theoretical Computer Science 0 (009) 599 606 603 Lemma 3.. Consider any positively normalized n m bimatrix game Γ = A, B and let a i,j = max i,j a i,j and b i,j = max i,j b i,j. Then the pair of strategies (ˆx, ŷ) where ˆx i = ˆx i = ŷ j = ŷ j = is a 3 -Nash equilibrium for Γ. Proof. First observe that ˆx T Aŷ = ˆx i ŷ j a i,j = ˆx i ŷ j a i,j + ˆx i ŷ j a i,j + ˆx i ŷ j a i,j + ˆx j ŷ j a i,j = ( ) ai,j + a i,j + a i,j + a i,j a i,j. Similarly, ˆx T Bŷ = ˆx i ŷ j b i,j = ˆx i ŷ j b i,j + ˆx i ŷ j b i,j + ˆx i ŷ j b i,j + ˆx j ŷ j b i,j = ( ) bi,j + b i,j + b i,j + b i,j b i,j. Now observe that, for any (mixed) strategies x and y of the row and column players respectively, x T Aŷ a i,j and ˆx T By b i,j and recall that a i,j, b i,j [0, ] for all i N, j M. Hence and x T Aŷ a i,j = a i,j + 3 a i,j ˆx T Aŷ + 3 ˆx T By b i,j = b i,j + 3 a i,j ˆx T Bŷ + 3. Thus (ˆx, ŷ) is a 3 -Nash equilibrium for Γ.. A parameterized approximation We now proceed in extending the technique used in the proof of Lemma 3. so as to obtain a parameterized, stronger approximation. Theorem.. Consider a positively normalized n m bimatrix game Γ = A, B. Let λ (λ ) be the minimum, among all Nash equilibria of Γ, expected payoff for the row (column) player and let λ = max{λ, λ +λ }. Then, there exists a -Nash equilibrium that can be computed in time polynomial in n and m. Proof. Observe that, for any pair of strategies x, y of the row and column players respectively, it holds that x T Ay [0, ] and x T By [0, ]. Consider the following linear programs LP and LP: minimize subject to LP t m a i,jy j t i [n] m y j = y j 0 j [m] minimize subject to LP s n b i,jx i s j [m] n x i = x i 0 i [n] Let t, y and s, x correspond to the optimal solutions of LP and LP respectively. Then, there exists at least one row r [n] such that j a r,jy j = t. Similarly, there exists at least one column c [m] such that i b i,cx i = s. Let λ be the minimum, among all Nash equilibria of Γ, expected payoff for the row player and let ( x, ỹ ) be the corresponding Nash equilibrium. Then λ, ỹ is a feasible solution for LP, thus t λ. Similarly, let λ be the minimum, among all Nash equilibria of Γ, expected payoff for the row player and let ( x, ỹ ) be the corresponding Nash equilibrium. Then λ, ỹ is a feasible solution for LP, thus s λ. Now let λ = max{λ, λ }. Thus t λ and s λ.

60 S.C. Kontogiannis et al. / Theoretical Computer Science 0 (009) 599 606 Now consider the pair of strategies (ˆx, ŷ) for the row and column players respectively defined as follows: ˆx i = x i i [n] {r} ˆx r = x r + ŷ j = y j j [m] {c} ŷ c = y c +. Observe that ˆx T Aŷ = ˆx i ŷ j a i,j = x y i j a i,j + i r j c i r a r,j y j x i ( y c + ) ( x r a i,c + + ) y ( j x a r r,j + + ) ( y c + ) a r,c j c = t. Furthermore, for each row i [n], y j ŷ j a i,j = a i,j + a i,c Similarly, ˆx T Bŷ = t + ˆx T Aŷ + + t ˆx T Aŷ + + λ. ŷ j ˆx i b i,j = y j x i b i,j + j c i r j c b i,c x i y j ( x r + ) ( y c b r,j + + ) x ( i y b c i,c + + ) ( x r + ) b r,c i r = s and, for each column j [m], x i ˆx i b i,j = b i,j + b r,j s + ˆx T Bŷ + + s ˆx T Bŷ + + λ. Thus, (ˆx, ŷ) is a +λ -Nash equilibrium for Γ that can be computed in polynomial time.

S.C. Kontogiannis et al. / Theoretical Computer Science 0 (009) 599 606 605 Note that, for any bimatrix game Γ = A, B, we can check in polynomial time whether there exists a Nash equilibrium in which each player chooses with probability one of her pure strategies (i.e. a pure Nash equilibrium). If there exists such an equilibrium, then we can find it in polynomial time and there is no point in searching for ɛ-nash equilibria. On the other hand, if all Nash equilibria are not pure, then the payoff of either player is strictly less than, hence λ = max{λ, λ} <. Thus +λ < 3, ensuring that the algorithm described in the above proof yields a stronger approximation than the one presented in Section 3... An application The approximation factor achieved by the algorithm we just described depends on λ and λ. We believe that, in most situations, there exists a Nash equilibrium such that the payoff of the row player is small, and that there exists a (possibly different) Nash equilibrium such that the payoff of the column player is small, and thus the approximation achieved is close to. As an example, consider the n n generalized matching pennies game Γ = A, B where A and B are described as follows: { if i = j a i,j = 0 else { if j = i(mod n) + b i,j =. 0 else Observe that the pair of strategies ( x, ỹ) where x i = ỹ i = for all i [n] is a Nash equilibrium of the generalized matching n pennies game. Indeed, for any x, y P n, x T Aỹ = a n i,j = n n = n = xt Aỹ x T By = n b i,j = n n = n = xt Bỹ. Thus ( x, ỹ) is a Nash equilibrium that gives each player a payoff equal to. By applying Theorem., we can obtain n in polynomial time a +/n -Nash equilibrium. Thus we can guarantee an approximation factor that tends to as n. 5. Conclusions In this paper we tried to approximate, within a constant additive factor, the problem of computing a Nash equilibrium in an arbitrary n m bimatrix game. The (additive) approximation parameter achieved by the algorithm described in the above proof of Theorem. depends on λ and λ, i.e. the minimum payoff, over all Nash equilibria, for the row and column players respectively. Observe that, as long as not all Nash equilibria of the game give payoffs very close to for either player, the algorithm gives an approximation very close to. In other words, it suffices that there exists a Nash equilibrium that gives the row player a payoff close to 0 and a Nash equilibrium (not necessarily the same!) that gives the column player a payoff close to 0 so that the approximation achieved can be ensured to be close to. Furthermore, this is just a sufficient and not a necessary condition: recall that we only used λ and λ so as to prove the existence of feasible solutions to some linear constraints. Furthermore, for both Lemma 3. and Theorem., we used a factor of to deal with the underlying Linear Complementarity Problem. More specifically, we tried to compute independently for each player a strategy that guarantees her a sufficiently large payoff, and then we merged in an equivalent way the strategies found with the ones needed by the other player so as to approximate a Nash equilibrium. We observed that, for the specific algorithms presented in these results, this factor of is optimal. Albeit simple, we believe that the techniques described here are a first step towards establishing whether there exists any approximation scheme for computing an ɛ-nash equilibrium and that our methods can be extended in order to achieve stronger approximations to the problem of finding Nash equilibria of bimatrix games. Acknowledgment We thank Dimitris Fotakis for contributing to our work, an improvement to Theorem.. In fact it can be proved that ( x, ỹ) is the unique Nash equilibrium of the generalized matching pennies game.

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