Graphical Models for Game Theory - University of Pennsylvania.ppt

Network Models and Algorithms for Strategic and Economic Reasoning Michael Kearns Computer and Information Science University of Pennsylvania World Congress of the Game Theory Society Marseille, July 2004 International Trade Sources of Structured Interaction in Social and Economic Analysis Trade agreements and restrictions Social relationships between business people Reporting and organizational structure in a firm Regulatory restrictions on Wall Street Shared influences within an industry or sector Geographical dispersion of parties Physical connectivity (Internet, peer-to-peer) Computational benefits of modeling network structure? improved algorithms for equilibrium computation distributed, local computation and adaptation richer kinds of “conditional equilibrium” queries How does network topology influence outcomes? local interaction vs. global equilibrium coalitions, correlations and network structure price variation, wealth distribution and network structure What kinds of networks to examine? social network theory and generative models small worlds, preferential attachment and random graphs Outline Graphical Games and the NashProp Algorithm [K., Littman Singh 01]; [Ortiz K. 02] Correlated Equilibria, Graphical Games, and Markov Networks [Kakade, K. Langford 03] Graphical Economics and Social Network Theory [Kakade, K. Ortiz 04]; [Kakade, K., Ortiz, Pemantle, Suri 04] Graphical Games and NashProp Graphical Models for Game Theory Alternative to normal form, which grows exp(n) for n players Undirected graph G capturing local (strategic) interactions Each player represented by a vertex N_i(G) : neighbors of i in G (includes i) Assume: Payoffs expressible as M_i(a) where a over only N_i(G) Graphical game: (G,{M_i}) Compact representation of game Exponential in max degree ( # of players) Must still look for special structure for efficient computations Related models: [Koller Milch 01] [La Mura 00] The NashProp Algorithm Local message-passing; tables of