August 6th, 2024

Finding Nash equilibria through simulation

The article describes Python programs that find and visualize Nash Equilibria in simultaneous games, tailored for different matrix sizes, emphasizing their educational value in understanding game theory concepts.

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Finding Nash equilibria through simulation

The article discusses a series of Python programs designed to find and visualize Nash Equilibria (NE) in simultaneous games, such as the Prisoner's Dilemma and Rock, Paper, Scissors. Developed as part of a course based on William Spaniel's "Game Theory 101," the programs include sim22.py, sim33.py, sim44.py, and simNN.py, each tailored to different sizes of payoff matrices. The sim22.py program analyzes a 2x2 matrix, demonstrating how players' strategies converge to a pure NE, while sim33.py handles a 3x3 matrix, revealing a mixed NE in Rock, Paper, Scissors. The sim44.py program extends this to a 4x4 matrix, visualizing outcomes in a battle scenario, and simNN.py accommodates larger matrices using generalized barycentric coordinates. Each program employs repeated gameplay to adjust strategy weights based on performance, ultimately visualizing the results through various graphical representations. The article emphasizes the educational value of these simulations in understanding game theory concepts and provides insights into the implementation details and potential improvements for efficiency.

- The Python programs simulate simultaneous games to find Nash Equilibria.

- Each program is designed for specific matrix sizes: 2x2, 3x3, 4x4, and NxN.

- Visualization techniques include barycentric coordinates and simplex graphs.

- The simulations adjust strategy weights based on player performance over multiple rounds.

- The code requires Matplotlib and python-ternary for graphical output.

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AI: What people are saying
The comments on the article about Python programs for finding and visualizing Nash Equilibria reflect a variety of perspectives and interests in game theory and its applications.
  • Several commenters reference John Nash and his contributions to game theory, including mentions of the film "A Beautiful Mind."
  • There is a discussion on the complexity of finding Nash equilibria, with references to computational challenges and the PPAD-completeness of the problem.
  • Some users express interest in applying the concepts to specific games, such as poker and market dynamics.
  • Questions arise about the choice of simulation methods versus analytical approaches for finding equilibria.
  • Commenters share their own projects and experiences related to game theory, indicating a collaborative interest in the topic.
Link Icon 11 comments
By @cs702 - 7 months
Cool and interesting. Thank you for sharing on HN.

As Nash proved, under very general conditions (e.g., payoffs are finite), in every game there's always at least one equilibrium, i.e., at least one fixed point.

Alas, as Papadimitriou proved in the 90's, finding Nash equilibria is PPAD-complete.[a][b]

So, as games get larger and more complex -- say, with rules and payoffs that evolve over time -- finding equilibria can become... intractable: There will always exist at least one Nash equilibrium, but you'll never be able to reach it. Simulation may well be the only way to model such games.

---

[a] https://en.wikipedia.org/wiki/PPAD_(complexity)

[b] There's a great intro lecture on this by Papadimitriou himself at https://www.youtube.com/watch?v=TUbfCY_8Dzs

By @eclark - 7 months
I am currently trying to do this for poker in open source. https://github.com/elliottneilclark/rs-poker/pull/92

Find the Nash equilibrium for poker with an exact set of cards and a deck. There's a fun arena-based tree structure that should allow finding the optimal strategy for different bet sizes, etc. One of the most challenging parts of finding the equilibrium is ensuring the simulation has no edge cases where value is lost.

There's a bug somewhere, and the game state isn't matching the second time through a tree node. (I'd pay a bounty to whoever can get it finished)

By @someguy101010 - 7 months
Nice! I'll have to read through this and use it to improve https://brev.dev/blog/how-to-win-a-2-player-game-of-are-you-... which was a similar exercise on a game slightly different than prisoners dilemma. I like being able to use "brute force" numerical methods to solve problems like this because they are often simpler to construct and exploit the fact that computers go brrr.
By @abdullahkhalids - 7 months
One of my goals is to understand markets through Game Theory. On the producer side, every player can hold, increase or decrease their price. And that changes the rewards for every other player.

What are good references for this?

By @artimis - 7 months
Why have you chosen to simulate players if Nash Equilibrium can be computed analytically (or at least numerically)?

I've used optimization of https://en.wikipedia.org/wiki/Lyapunov_function in my Bachelor thesis https://github.com/Artimi/neng to do that.

By @t_mann - 7 months
AlphaZero is arguably like those algorithms on steroids, probably worth a mention there. Even though the goal is a bit different, finding Nash equilibria for games like Go is probably still infeasible, but you also don't need that to beat humans.
By @nadis - 7 months
This is very cool! We've been exploring the idea of software simulation with what we're building (CodeYam) but I hadn't really thought a ton about applying simulation to find the Nash equilibria / for game theory. Nicely done!
By @jsemrau - 7 months
I was working on a local LLM ReAct agent that can play the prisoner's dilemma. The "thought" process was fascinating to watch. Not to anthropomorphize though.
By @Log_out_ - 7 months
Where in game theory would one model a nuclear armed country going bankrupt ala pakistan?
By @ForOldHack - 7 months
Nash as in 'A Beautiful Mind' - Nash.

https://en.wikipedia.org/wiki/John_Forbes_Nash_Jr.

By @fifilura - 7 months
John Nash is portrayed by Russell Crowe in the movie "A beautiful Mind"

https://www.imdb.com/title/tt0268978