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Convergence of Nash Dynamics: Equilibria and Nearly-Optimal - PowerPoint PPT Presentation

Convergence of Nash Dynamics: Equilibria and Nearly-Optimal Solutions Vahab Mirrokni Google Research, New York Heiko R oglin Department of Quantitative Economics Maastricht University ACM Conference on Electronic Commerce (EC09)


  1. Rosenthal’s Potential Function 2 / 3 2 / 3 s 1 t 3 s 1 t 3 s 2 2 1 / 8 1 s 2 2 1 / 8 1 t 2 t 2 s 3 t 1 s 3 t 1 4 4 φ ( S ′ ) = 2 +( 2 + 3 )+ 1 + 1 = 9 φ ( S ) = 2 + 2 + ( 1 + 8 ) = 13 Rosenthal (Int. Journal of Game Theory 1973) Every congestion game admits an exact potential function. Φ: Σ 1 × · · · × Σ n → N with 0 ≤ Φ ≤ n · m · ℓ max player decreases his latency by x ∈ N ⇒ Φ decreases by x as well n r = number of players i with r ∈ S i ∈ Σ i n r � � φ ( S ) = ℓ r ( i ) i = 1 r ∈R

  2. Rosenthal’s Potential Function 2 / 3 2 / 3 s 1 t 3 s 1 t 3 s 2 2 1 / 8 1 s 2 2 1 / 8 1 t 2 t 2 s 3 t 1 s 3 t 1 4 4 φ ( S ′ ) = 2 +( 2 + 3 )+ 1 + 1 = 9 φ ( S ) = 2 + 2 + ( 1 + 8 ) = 13 Rosenthal (Int. Journal of Game Theory 1973) Every congestion game admits an exact potential function. Φ: Σ 1 × · · · × Σ n → N with 0 ≤ Φ ≤ n · m · ℓ max player decreases his latency by x ∈ N ⇒ Φ decreases by x as well n r = number of players i with r ∈ S i ∈ Σ i n r � � φ ( S ) = ℓ r ( i ) i = 1 r ∈R ⇒ Number of better response at most n · m · ℓ max .

  3. Known Results on Convergence Time Fabrikant, Papadimitriou, Talwar (STOC 04) 2 / 3 s 1 t 3 There exist network congestion games with an initial 1 / 8 s 2 2 1 t 2 state from which all better response sequences s 3 t 1 4 have exponential length.

  4. Known Results on Convergence Time Fabrikant, Papadimitriou, Talwar (STOC 04) 2 / 3 s 1 t 3 There exist network congestion games with an initial 1 / 8 s 2 2 1 t 2 state from which all better response sequences s 3 t 1 4 have exponential length. Ieong, McGrew, Nudelman, Shoham, Sun (AAAI 05) In singleton games all best response sequences have length at most n 2 · m .

  5. Known Results on Convergence Time Fabrikant, Papadimitriou, Talwar (STOC 04) 2 / 3 s 1 t 3 There exist network congestion games with an initial 1 / 8 s 2 2 1 t 2 state from which all better response sequences s 3 t 1 4 have exponential length. Ieong, McGrew, Nudelman, Shoham, Sun (AAAI 05) In singleton games all best response sequences have length at most n 2 · m . Ackermann, R., V¨ ocking (FOCS 06) In spanning tree congestion games all best response sequences have length at most n 2 · m · number of vertices. In matroid congestion games all best response sequences have length at most n 2 · m · rank .

  6. Singleton Games Singleton Games 2 / 100 / 120 / 150 1 / 5 / 10 / 15 Idea: Reduce latencies without affecting the game! r ′ r ℓ r ( n r ) > ℓ r ′ ( n r ′ + 1)

  7. Singleton Games Singleton Games 2 / 100 / 120 / 150 1 / 5 / 10 / 15 Idea: Reduce latencies without affecting the game! equivalent latencies ℓ r ( x ) ≤ n · m ∀ r , r ′ ∈ R , n r , n r ′ : ℓ r ( n r ) > ℓ r ′ ( n r ′ + 1 ) r ′ ⇐ ⇒ ℓ r ( n r ) > ℓ r ′ ( n r ′ + 1 ) r ℓ r ( n r ) > ℓ r ′ ( n r ′ + 1)

  8. Singleton Games 2 / 6 / 7 / 8 1 / 3 / 4 / 5 Singleton Games 2 / 100 / 120 / 150 1 / 5 / 10 / 15 Idea: Reduce latencies without affecting the game! equivalent latencies ℓ r ( x ) ≤ n · m ∀ r , r ′ ∈ R , n r , n r ′ : ℓ r ( n r ) > ℓ r ′ ( n r ′ + 1 ) r ′ ⇐ ⇒ ℓ r ( n r ) > ℓ r ′ ( n r ′ + 1 ) r ℓ r ( n r ) > ℓ r ′ ( n r ′ + 1)

  9. Singleton Games 2 / 6 / 7 / 8 1 / 3 / 4 / 5 Singleton Games 2 / 100 / 120 / 150 1 / 5 / 10 / 15 Idea: Reduce latencies without affecting the game! equivalent latencies ℓ r ( x ) ≤ n · m ∀ r , r ′ ∈ R , n r , n r ′ : ℓ r ( n r ) > ℓ r ′ ( n r ′ + 1 ) r ′ ⇐ ⇒ ℓ r ( n r ) > ℓ r ′ ( n r ′ + 1 ) r ℓ r ( n r ) > ℓ r ′ ( n r ′ + 1) Network Congestion Games r 1 r 2 r 1 r 2 s s t t r ′ r ′ 2 ℓ r 1 ( n r 1 ) + ℓ r 2 ( n r 2 ) > ℓ r ′ r ′ r ′ 1 ( n r ′ 1 + 1 ) + ℓ r ′ 2 ( n r ′ 2 + 1 ) 1 1 2

  10. Singleton Games 2 / 6 / 7 / 8 1 / 3 / 4 / 5 Singleton Games 2 / 100 / 120 / 150 1 / 5 / 10 / 15 Idea: Reduce latencies without affecting the game! equivalent latencies ℓ r ( x ) ≤ n · m ∀ r , r ′ ∈ R , n r , n r ′ : ℓ r ( n r ) > ℓ r ′ ( n r ′ + 1 ) r ′ ⇐ ⇒ ℓ r ( n r ) > ℓ r ′ ( n r ′ + 1 ) r ℓ r ( n r ) > ℓ r ′ ( n r ′ + 1) Network Congestion Games r 1 r 2 r 1 r 2 s s t t r ′ r ′ 2 ℓ r 1 ( n r 1 ) + ℓ r 2 ( n r 2 ) > ℓ r ′ r ′ r ′ 1 ( n r ′ 1 + 1 ) + ℓ r ′ 2 ( n r ′ 2 + 1 ) 1 1 2 However, latency reduction works also for matroid games.

  11. Matroid Congestion Games Ackermann, R., V¨ ocking (FOCS 2006) Let ( R , I ) be any non-matroid anti-chain. Then, for every n , there exists an n -player congestion game with the following properties. each Σ i is isomorphic to I , there is a best response sequence of length 2 Ω( n ) .

  12. Matroid Congestion Games Ackermann, R., V¨ ocking (FOCS 2006) Let ( R , I ) be any non-matroid anti-chain. Then, for every n , there exists an n -player congestion game with the following properties. each Σ i is isomorphic to I , there is a best response sequence of length 2 Ω( n ) . ⇒ Matroid property is the maximal property on the individual players’ strategy spaces that guarantees polynomial convergence.

  13. PLS Local Search Problem Π set of instances I Π for I ∈ I Π : set of feasible solutions F ( I ) for I ∈ I Π : objective function c : F ( I ) → Z for I ∈ I Π and S ∈ F ( I ) : neighborhood N ( S , I ) ⊆ F ( I )

  14. PLS Local Search Problem Π set of instances I Π for I ∈ I Π : set of feasible solutions F ( I ) for I ∈ I Π : objective function c : F ( I ) → Z for I ∈ I Π and S ∈ F ( I ) : neighborhood N ( S , I ) ⊆ F ( I ) Johnson, Papadimitriou, Yannakakis (FOCS 85) Π is in PLS if polynomial time algorithms exist for finding initial feasible solution S ∈ F ( I ) , computing the objective value c ( S ) , finding a better solution in the neighborhood N ( S , I ) if S is not locally optimal.

  15. PLS-reductions Π 1 Π 2 PLS-reduction Polynomial-time computable f I Π 1 I Π 2 function f : I Π 1 → I Π 2 . Polynomial-time computable function ( S 2 ∈ F ( f ( I )) ) g : S 2 �→ S 1 ∈ F ( I ) g F ( I ) F ( f ( I ))

  16. PLS-reductions Π 1 Π 2 PLS-reduction Polynomial-time computable f I Π 1 I Π 2 function f : I Π 1 → I Π 2 . Polynomial-time computable function ( S 2 ∈ F ( f ( I )) ) g : S 2 �→ S 1 ∈ F ( I ) g F ( I ) F ( f ( I )) S 2 locally optimal ⇒ g ( S 2 ) locally optimal.

  17. PLS-reductions Π 1 Π 2 PLS-reduction Polynomial-time computable f I Π 1 I Π 2 function f : I Π 1 → I Π 2 . Polynomial-time computable function ( S 2 ∈ F ( f ( I )) ) g : S 2 �→ S 1 ∈ F ( I ) g F ( I ) F ( f ( I )) S 2 locally optimal ⇒ g ( S 2 ) locally optimal. local opt. of Π 2 easy to find ⇒ local opt. of Π 1 easy to find local opt. of Π 1 hard to find ⇒ local opt. of Π 2 hard to find

  18. PLS-reductions Π 1 Π 2 PLS-reduction Polynomial-time computable f I Π 1 I Π 2 function f : I Π 1 → I Π 2 . Polynomial-time computable function ( S 2 ∈ F ( f ( I )) ) g : S 2 �→ S 1 ∈ F ( I ) g F ( I ) F ( f ( I )) S 2 locally optimal ⇒ g ( S 2 ) locally optimal. local opt. of Π 2 easy to find ⇒ local opt. of Π 1 easy to find local opt. of Π 1 hard to find ⇒ local opt. of Π 2 hard to find A PLS-reduction is called tight if it does not shorten distances in the state graph. ⇒ Exponential lower bounds are preserved.

  19. Party Affiliation Games Party Affiliation Game: Input: G ( V , E ) and w : E → N 3 1 agents = nodes, Σ i = { left , right } 2 4 w ( { u , v } ) = antipathy of u and v

  20. Party Affiliation Games Party Affiliation Game: Input: G ( V , E ) and w : E → N 3 1 agents = nodes, Σ i = { left , right } 2 4 w ( { u , v } ) = antipathy of u and v Sch¨ affer, Yannakakis (SIAM J. Comput. 1991) Finding a locally optimal cut is PLS-complete.

  21. Party Affiliation Games Party Affiliation Game: Input: G ( V , E ) and w : E → N 3 1 agents = nodes, Σ i = { left , right } 2 4 w ( { u , v } ) = antipathy of u and v Sch¨ affer, Yannakakis (SIAM J. Comput. 1991) Finding a locally optimal cut is PLS-complete. Very involved reduction from Circuit/Flip. First PLS-complete problem: Circuit/Flip C : Boolean circuit composed of AND, OR, and NOT gates. Input to C : x 1 , . . . , x m ∈ { 0 , 1 } . Output of C : y 1 , . . . , y n ∈ { 0 , 1 } .

  22. Party Affiliation Games Party Affiliation Game: Input: G ( V , E ) and w : E → N 3 1 agents = nodes, Σ i = { left , right } 2 4 w ( { u , v } ) = antipathy of u and v Sch¨ affer, Yannakakis (SIAM J. Comput. 1991) Finding a locally optimal cut is PLS-complete. Very involved reduction from Circuit/Flip. First PLS-complete problem: Circuit/Flip C : Boolean circuit composed of AND, OR, and NOT gates. Input to C : x 1 , . . . , x m ∈ { 0 , 1 } . Output of C : y 1 , . . . , y n ∈ { 0 , 1 } . Objective function: f ( x 1 , . . . , x m ) = � n i = 1 2 i − 1 y i .

  23. Party Affiliation Games Party Affiliation Game: Input: G ( V , E ) and w : E → N 3 1 agents = nodes, Σ i = { left , right } 2 4 w ( { u , v } ) = antipathy of u and v Sch¨ affer, Yannakakis (SIAM J. Comput. 1991) Finding a locally optimal cut is PLS-complete. Very involved reduction from Circuit/Flip. First PLS-complete problem: Circuit/Flip C : Boolean circuit composed of AND, OR, and NOT gates. Input to C : x 1 , . . . , x m ∈ { 0 , 1 } . Output of C : y 1 , . . . , y n ∈ { 0 , 1 } . Objective function: f ( x 1 , . . . , x m ) = � n i = 1 2 i − 1 y i . Neighborhood = Hamming distance 1

  24. Congestion Games and PLS Finding an equilibrium in a congestion game belongs to PLS : objective function = Rosenthal’s potential function S ′ ∈ N ( S ) if S ′ is obtained from S by better response of one of the players.

  25. Congestion Games and PLS Finding an equilibrium in a congestion game belongs to PLS : objective function = Rosenthal’s potential function S ′ ∈ N ( S ) if S ′ is obtained from S by better response of one of the players. PLS-completeness follows by reduction from MaxCut: R out R in w 1 , 2 + w 1 , 3 = W 1 r 1 2 2 0 /w i,j w 1 , 2 w 1 , 2 + w 2 , 3 + w 2 , 4 = W 2 1 2 r 2 r 1 , 2 r 2 , 3 2 2 w 1 , 3 w 2 , 4 r 2 , 4 w 1 , 3 + w 2 , 3 + w 3 , 4 w 2 , 3 = W 3 r 1 , 3 r 3 , 4 r 3 2 2 3 4 w 3 , 4 w 2 , 4 + w 3 , 4 = W 4 r 4 2 2

  26. Congestion Games and PLS Finding an equilibrium in a congestion game belongs to PLS : objective function = Rosenthal’s potential function S ′ ∈ N ( S ) if S ′ is obtained from S by better response of one of the players. PLS-completeness follows by reduction from MaxCut: R out R in w 1 , 2 + w 1 , 3 = W 1 r 1 2 2 0 /w i,j w 1 , 2 w 1 , 2 + w 2 , 3 + w 2 , 4 = W 2 1 2 r 2 r 1 , 2 r 2 , 3 2 2 w 1 , 3 w 2 , 4 r 2 , 4 w 1 , 3 + w 2 , 3 + w 3 , 4 w 2 , 3 = W 3 r 1 , 3 r 3 , 4 r 3 2 2 3 4 w 3 , 4 w 2 , 4 + w 3 , 4 = W 4 r 4 2 2 g : player i on R in ⇐ ⇒ node i on left side

  27. Congestion Games and PLS Finding an equilibrium in a congestion game belongs to PLS : objective function = Rosenthal’s potential function S ′ ∈ N ( S ) if S ′ is obtained from S by better response of one of the players. PLS-completeness follows by reduction from MaxCut: R out R in w 1 , 2 + w 1 , 3 = W 1 r 1 2 2 0 /w i,j w 1 , 2 w 1 , 2 + w 2 , 3 + w 2 , 4 = W 2 1 2 r 2 r 1 , 2 r 2 , 3 2 2 w 1 , 3 w 2 , 4 r 2 , 4 w 1 , 3 + w 2 , 3 + w 3 , 4 w 2 , 3 = W 3 r 1 , 3 r 3 , 4 r 3 2 2 3 4 w 3 , 4 w 2 , 4 + w 3 , 4 = W 4 r 4 2 2 g : player i on R in ⇐ ⇒ node i on left side latency of player i on R in = weight of edges from i to the left side

  28. Congestion Games and PLS Finding an equilibrium in a congestion game belongs to PLS : objective function = Rosenthal’s potential function S ′ ∈ N ( S ) if S ′ is obtained from S by better response of one of the players. PLS-completeness follows by reduction from MaxCut: R out R in w 1 , 2 + w 1 , 3 = W 1 r 1 2 2 0 /w i,j w 1 , 2 w 1 , 2 + w 2 , 3 + w 2 , 4 = W 2 1 2 r 2 r 1 , 2 r 2 , 3 2 2 w 1 , 3 w 2 , 4 r 2 , 4 w 1 , 3 + w 2 , 3 + w 3 , 4 w 2 , 3 = W 3 r 1 , 3 r 3 , 4 r 3 2 2 3 4 w 3 , 4 w 2 , 4 + w 3 , 4 = W 4 r 4 2 2 g : player i on R in ⇐ ⇒ node i on left side latency of player i on R in = weight of edges from i to the left side node i on left side ⇐ ⇒ latency on R in ≤ W i / 2 ⇐ ⇒ contribution to cut when on left side ≥ W i / 2

  29. Network Congestion Games and PLS Fabrikant, Papadimitriou, Talwar (STOC 04) Finding a pure Nash equilibrium in network congestion games is PLS-complete . Reduction from Circuit/Flip that reworks MaxCut reduction.

  30. Network Congestion Games and PLS Fabrikant, Papadimitriou, Talwar (STOC 04) Finding a pure Nash equilibrium in network congestion games is PLS-complete . Reduction from Circuit/Flip that reworks MaxCut reduction. Ackermann, R., V¨ ocking (FOCS 06) s 1 Network congestion games are PLS-complete for s 2 (un)directed networks with linear latency s 3 functions . s 4 t 1 t 2 t 3 t 4 Simple reduction from MaxCut.

  31. Network Congestion Games and PLS Fabrikant, Papadimitriou, Talwar (STOC 04) Finding a pure Nash equilibrium in network congestion games is PLS-complete . Reduction from Circuit/Flip that reworks MaxCut reduction. Ackermann, R., V¨ ocking (FOCS 06) s 1 Network congestion games are PLS-complete for s 2 (un)directed networks with linear latency s 3 functions . s 4 t 1 t 2 t 3 t 4 Simple reduction from MaxCut. All these PLS-reductions are tight . ⇒ There exist states exponentially far from all sinks in the state graph.

  32. Approximate Equilibria What happens if players are lazy ? Approximate Equilibria A state S = ( S 1 , . . . , S n ) is called ( 1 + ε ) -approximate equilibrium if ∀ i ∈ N : latency of player i ≤ ( 1 + ε ) · min achievable latency of player i

  33. Approximate Equilibria What happens if players are lazy ? Approximate Equilibria A state S = ( S 1 , . . . , S n ) is called ( 1 + ε ) -approximate equilibrium if ∀ i ∈ N : latency of player i ≤ ( 1 + ε ) · min achievable latency of player i Positive Result: Chien, Sinclair (SODA 07) In any symmetric congestion game with α -bounded jump condition, the ( 1 + ε ) -Nash dynamics converges after at most poly ( n , α, ε − 1 , log ( ℓ max )) steps, assuming liveness property. Idea: high-cost player moves ⇒ significant potential drop S not ( 1 + ε ) -equilibrium ⇒ ∃ high-cost player that has an incentive to move. (due to α -bounded jump condition and symmetry)

  34. Approximate Equilibria What happens if players are lazy ? Approximate Equilibria A state S = ( S 1 , . . . , S n ) is called ( 1 + ε ) -approximate equilibrium if ∀ i ∈ N : latency of player i ≤ ( 1 + ε ) · min achievable latency of player i Positive Result: Chien, Sinclair (SODA 07) In any symmetric congestion game with α -bounded jump condition, the ( 1 + ε ) -Nash dynamics converges after at most poly ( n , α, ε − 1 , log ( ℓ max )) steps, assuming liveness property. Idea: high-cost player moves ⇒ significant potential drop S not ( 1 + ε ) -equilibrium ⇒ ∃ high-cost player that has an incentive to move. (due to α -bounded jump condition and symmetry)

  35. Approximate Equilibria What happens if players are lazy ? Approximate Equilibria A state S = ( S 1 , . . . , S n ) is called ( 1 + ε ) -approximate equilibrium if ∀ i ∈ N : latency of player i ≤ ( 1 + ε ) · min achievable latency of player i Negative Result: Skopalik, V¨ ocking (STOC 2008) It is PLS-hard to compute an ( 1 + ε ) -approximate equilibrium for any polynomial-time computable ε . ⇒ Exponentially many steps until ( 1 + ε ) -approx. eq. is reached. Very involved reduction from Circuit/Flip.

  36. Summary of Convergence Results ε -Nash Dynamics Nash Dynamics Matroid poly poly Symmetric Network exp poly Asymmetric Network exp, PLS-complete exp Symmetric General exp, PLS-complete poly Asymmetric General exp, PLS-complete exp, PLS-complete Cut Games exp, PLS-complete ?

  37. Outline Introduction: Games, Equilibria, and Dynamics 1 Convergence to Equilibria 2 Potential Games and PLS Non-Potential Games Convergence to Nearly-Optimal Solutions 3 Potential Games Non-Potential Games Other Dynamics 4 Equilibria Nearly-optimal Solutions Conclusion 5

  38. Non-potential Games State Graph Player 2 (S1,T2,S3) (S1,S2,S3) Player 3 (S1,S2,T3) Sink equilibrium: [Goemans, M., Vetta (FOCS 2005)] strongly connected comp. of state graph without outgoing edges ⇒ random Nash dynamics eventually reaches sink equilibrium

  39. An Example 2 4 P 4 2 P 3 3 5 1 3 P 2 6 1 4 P 1 Two agents: ( r 1 = 1, r 2 = 2). l 1 ( x ) = x + 33, l 2 ( x ) = 13 x , l 3 ( x ) = 3 x 2 , l 4 ( x ) = 6 x 2 , l 5 ( x ) = x 2 + 44, and l 6 ( x ) = 47 x .

  40. An Example 2 4 P 4 2 P 3 3 5 1 3 P 2 6 1 4 P 1 Two agents: ( r 1 = 1, r 2 = 2). Only Sink equilibrium: { ( P 1 , P 2 ) , ( P 3 , P 2 ) , ( P 3 , P 4 ) , ( P 1 , P 4 ) } . No Pure Nash equilibrium.

  41. Non-potential Games Sink equilibrium: [Goemans, M., Vetta (FOCS 2005)] strongly connected comp. of state graph without outgoing edges

  42. Non-potential Games Sink equilibrium: [Goemans, M., Vetta (FOCS 2005)] strongly connected comp. of state graph without outgoing edges Complexity Questions about Nash Dynamics and sink equilibria: Given a state in a game, is it in a sink equilibrium? 1 2 Given a game, determine if it has a pure Nash equilibrium? Given a game, determine if it has any non-singleton sink 3 equilibrium?

  43. Non-potential Games Sink equilibrium: [Goemans, M., Vetta (FOCS 2005)] strongly connected comp. of state graph without outgoing edges Complexity Questions about Nash Dynamics and sink equilibria: Given a state in a game, is it in a sink equilibrium? 1 2 Given a game, determine if it has a pure Nash equilibrium? Given a game, determine if it has any non-singleton sink 3 equilibrium? Theorem (M., Skopalik, EC 2009) For many classes of games with succinet representation, it is PSPACE-hard to answer questions 1 and 3, and it is NP-hard to answer question 2. Player-specific and weighted congestion games. Anonymous Games and Graphical Games. Many-to-one two-sided market games.

  44. Games with Singleton Sink Equilibria Interesting subclass : Games with only singleton sink equilibria Milchtaich (Games and Economics Behaviour, 1996) Player-specific singleton congestion games: Pure Nash equilibria exist, but best resp. dyn. can cycle. From every state there is a sequence of best responses to an equilibrium.

  45. How to find a stable marriage? Let’s get to the really important problems. . .

  46. The Stable Marriage Problem Set of men Y Set of women X

  47. The Stable Marriage Problem Set of men Y Set of women X ( ) ( ) , , , , ( ) ( ) , , , , ( ) ( ) , , , , Every person has a preference list.

  48. The Stable Marriage Problem Set of men Y Set of women X ( ) ( ) , , , , ( ) ( ) , , , , ( ) ( ) , , , , Every person has a preference list.

  49. The Stable Marriage Problem Set of men Y Set of women X ( ) ( ) , , , , ( ) ( ) , , , , ( ) ( ) , , , , Every person has a preference list.

  50. Formal Definition Stable Matching A matching is stable if there does not exist a blocking pair.

  51. Formal Definition Stable Matching A matching is stable if there does not exist a blocking pair. w m ( w , m ′ ) is blocking pair ⇐ ⇒ 1) w prefers m ′ to m 2) m ′ prefers w to w ′ w ′ m ′

  52. Formal Definition Stable Matching A matching is stable if there does not exist a blocking pair. w m ( w , m ′ ) is blocking pair ⇐ ⇒ 1) w prefers m ′ to m 2) m ′ prefers w to w ′ w ′ m ′

  53. Formal Definition Stable Matching A matching is stable if there does not exist a blocking pair. w m ( w , m ′ ) is blocking pair ⇐ ⇒ 1) w prefers m ′ to m 2) m ′ prefers w to w ′ w ′ m ′ Theorem [Gale, Shapley 1962] A stable matching can be computed efficiently.

  54. Applications and Previous Work Many Applications: Interns/Hospitals, College Admission, Labor market.

  55. Applications and Previous Work Many Applications: Interns/Hospitals, College Admission, Labor market. Main Question What happens without central authority? Do players reach a stable matching? How long does it take?

  56. Applications and Previous Work Many Applications: Interns/Hospitals, College Admission, Labor market. Main Question What happens without central authority? Do players reach a stable matching? How long does it take? Consecutive resolving of blocking pairs: Knuth observed a cycle. Roth and Vande Vate showed that there is no non-trivial sink equilibrium (Econometrica 1990).

  57. Best Response Dynamics Matching not stable ⇒ Choose woman, let her play best response. ( ) ( ) , , , , ( ) ( ) , , , , ( ) ( ) , , , ,

  58. Best Response Dynamics Matching not stable ⇒ Choose woman, let her play best response. ( ) ( ) , , , , ( ) ( ) , , , , ( ) ( ) , , , ,

  59. Best Response Dynamics Matching not stable ⇒ Choose woman, let her play best response. ( ) ( ) , , , , ( ) ( ) , , , , ( ) ( ) , , , ,

  60. Best Response Dynamics Matching not stable ⇒ Choose woman, let her play best response. ( ) ( ) , , , , ( ) ( ) , , , , ( ) ( ) , , , ,

  61. Best Response Dynamics Ackermann, Goldberg, M., R., V¨ ocking (EC 2008) The best response dynamics can cycle. Was shown for better response dynamics by Knuth.

  62. Best Response Dynamics Ackermann, Goldberg, M., R., V¨ ocking (EC 2008) The best response dynamics can cycle. Was shown for better response dynamics by Knuth. Ackermann, Goldberg, M., R., V¨ ocking (EC 2008) From every matching there exists a sequence of 2 n 2 best responses to a stable matching. Was shown for better response dynamics by Roth and Vande Vate. ⇒ Random best response dynamics reaches a stable matching with probability 1.

  63. Best Response Dynamics Ackermann, Goldberg, M., R., V¨ ocking (EC 2008) The best response dynamics can cycle. Was shown for better response dynamics by Knuth. Ackermann, Goldberg, M., R., V¨ ocking (EC 2008) From every matching there exists a sequence of 2 n 2 best responses to a stable matching. Was shown for better response dynamics by Roth and Vande Vate. ⇒ Random best response dynamics reaches a stable matching with probability 1. Ackermann, Goldberg, M., R., V¨ ocking (EC 2008) There exist instances such that the expected number of best responses is Ω( c n ) for some constant c > 1. Similar exponential bound holds for better response dynamics.

  64. Best Response Dynamics – Upper Bound Theorem From every matching there exists a sequence of 2 n 2 best responses to a stable matching. Claim 1 If only married women play best responses, after at most n 2 steps every married woman is happy. Claim 2 If every married woman is happy, every sequence of best responses terminates after at most n 2 steps.

  65. Best Response Dynamics Claim 1 If only married women play best responses, after at most n 2 steps every married woman is happy. Proof. Use the following potential function: � Φ = rank of w ’s current partner married woman w 0 ≤ Φ ≤ n 2 and Φ decreases with every best response.

  66. Best Response Dynamics Claim 1 If only married women play best responses, after at most n 2 steps every married woman is happy. Proof. Use the following potential function: � Φ = rank of w ’s current partner married woman w 0 ≤ Φ ≤ n 2 and Φ decreases with every best response. 1 3 Φ = 4

  67. Best Response Dynamics Claim 1 If only married women play best responses, after at most n 2 steps every married woman is happy. Proof. Use the following potential function: � Φ = rank of w ’s current partner married woman w 0 ≤ Φ ≤ n 2 and Φ decreases with every best response. 1 1 3 2 Φ = 4 Φ = 3

  68. Best Response Dynamics Claim 1 If only married women play best responses, after at most n 2 steps every married woman is happy. Proof. Use the following potential function: � Φ = rank of w ’s current partner married woman w 0 ≤ Φ ≤ n 2 and Φ decreases with every best response. 1 1 1 3 2 3 Φ = 4 Φ = 3 Φ = 4

  69. Best Response Dynamics Claim 1 If only married women play best responses, after at most n 2 steps every married woman is happy. Proof. Use the following potential function: � Φ = rank of w ’s current partner married woman w 0 ≤ Φ ≤ n 2 and Φ decreases with every best response. 1 1 1 3 2 3 1 Φ = 4 Φ = 3 Φ = 4 Φ = 1

  70. Best Response Dynamics – Upper Bound Claim 2 If every married woman is happy, every sequence of best responses terminates after at most n 2 steps. Proof. Invariant: No married woman can improve.

  71. Best Response Dynamics – Upper Bound Claim 2 If every married woman is happy, every sequence of best responses terminates after at most n 2 steps. Proof. Invariant: No married woman can improve. ⇒ Men are never dumped.

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