Paper detail

On terminating improvement in two-player games

A real-valued game has the finite improvement property (FIP), if starting from an arbitrary strategy profile and letting the players change strategies to increase their individual payoffs in a sequential but non-deterministic order always reaches a Nash equilibrium. E.g., potential games have the FIP. Many of them have the FIP by chance nonetheless, since modifying even a single payoff may ruin the property. This article characterises (in quadratic time) the class of the finite games where FIP not only holds but is also preserved when modifying all the occurrences of an arbitrary payoff. The characterisation relies on a pattern-matching sufficient condition for games (finite or infinite) to enjoy the FIP, and is followed by an inductive description of this class. A real-valued game is weakly acyclic if the improvement described above can reach a Nash equilibrium. This article characterises the finite such games using Markov chains and almost sure convergence to equilibrium. It also gives an inductive description of the two-player such games.