Bassel Tarbush

Tom Johnston, Michael Savery, Alex Scott et al.

We analyse the typical structure of games in terms of the connectivity properties of their best-response graphs. Our central result shows that, among games that are `generic' (without indifferences) and that have a pure Nash equilibrium, all but a small fraction are \emph{connected}, meaning that every action profile that is not a pure Nash equilibrium can reach every pure Nash equilibrium via best-response paths. This has important implications for dynamics in games. In particular, we show that there are simple, uncoupled, adaptive dynamics for which period-by-period play converges almost surely to a pure Nash equilibrium in all but a small fraction of generic games that have one (which contrasts with the known fact that there is no such dynamic that leads almost surely to a pure Nash equilibrium in \emph{every} generic game that has one). We build on recent results in probabilistic combinatorics for our characterisation of game connectivity.

Tom Johnston, Michael Savery, Alex Scott et al.

We study the typical structure of games in terms of their connectivity properties. A game is `connected' if it has a pure Nash equilibrium and there is a best-response path from every action profile which is not a pure Nash equilibrium to every pure Nash equilibrium; a game is generic if it has no indifferences. In previous work we showed that, among all $n$-player $k$-action generic games that admit a pure Nash equilibrium, the fraction that are connected tends to $1$ as $n$ gets sufficiently large relative to $k$. Here, we consider the large-$k$ regime, which behaves differently: we show that the connected fraction tends to $1-ζ_n$ as $k$ gets large, where $ζ_n>0$ is an explicit constant. Thus, a constant fraction of many-action games are \emph{not} connected. However, for $n\geq3$, $ζ_n$ is small and tends to $0$ rapidly with $n$, so as $n$ increases all but a vanishingly small fraction of many-player-many-action games are connected. Since connectedness is conducive to equilibrium convergence, we find a simple adaptive dynamic that is guaranteed to converge to a pure Nash equilibrium in all but a vanishingly small fraction of generic games that have one. We rely on new probabilistic and combinatorial arguments to tackle the large-$k$ regime.

Bary S. R. Pradelski, Bassel Tarbush

In a satisficing equilibrium each agent $i$ plays one of her top $k_i$ actions in response to the actions of the other agents. Our concept unifies models of bounded rationality and yields predictions that differ from canonical solution concepts. We study its theoretical properties and show that it provides sharp predictions, exists in most games as well as in a broad new class of economic environments, admits standard epistemic and dynamic foundations, and is empirically falsifiable.