Approximating Mixed Nash Equilibria using Smooth Fictitious Play in Simultaneous Auctions
OA Location
Author(s)
Gerding, Enrico
Rabinovich, Zinovi
Byde, Andrew
Elkind, Edith
Jennings, NR
Type
Conference Paper
Abstract
We investigate equilibrium strategies for bidding agents that participate in multiple, simultaneous second-price auctions with perfect substitutes. For this setting, previous research has shown that it is a best response for a bidder to participate in as many such auctions as there are available, provided that other bidders only participate in a single auction. In contrast, in this paper we consider equilibrium behaviour where all bidders participate in multiple auctions. For this new setting we consider mixed-strategy Nash equilibria where bidders can bid high in one auction and low in all others. By discretising the bid space, we are able to use smooth fictitious play to compute approximate solutions. Specifically, we find that the results do indeed converge to $$$epsilon$-Nash mixed equilibria and, therefore, we are able to locate equilibrium strategies in such complex games where no known solutions previously existed.
Date Issued
2008-05
Citation
2008, pp.1577-1580
Start Page
1577
End Page
1580
Identifier
http://eprints.soton.ac.uk/265133/
Source
The 7th International Conference on Autonomous Agents and Multiagent Systems
Notes
Event Dates: May 12-16
Publication Status
Unpublished