Papers › Computing Nash equilibria for integer programming games
Computing Nash equilibria for integer programming games
Margarida Carvalho, Andrea Lodi, João Pedro Pedroso
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The recently defined class of integer programming games (IPG) models situations where multiple self-interested decision makers interact, with their strategy sets represented by a finite set of linear constraints together with integer requirements. Many real-world problems can suitably be fit in this class, and hence anticipating IPG outcomes is of crucial value for policy makers and regulators. Nash equilibria have been widely accepted as the solution concept of a game. Consequently, their computation provides a reasonable prediction of the games outcome. In this paper, we start by showing the computational complexity of deciding the existence of a Nash equilibrium for an IPG. Then, using sufficient conditions for their existence, we develop two general algorithmic approaches that are guaranteed to approximate an equilibrium under mild conditions. We also showcase how our methodology can be changed to determine other equilibria definitions. The performance of our methods is analyzed through computational experiments in a knapsack game, a competitive lot-sizing game, and a kidney exchange game. To the best of our knowledge, this is the first time that equilibria computation methods for general integer programming games have been designed and computationally tested.
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