Table Of ContentICM Millennium Lectures on Games
Springer-Verlag Berlin Heidelberg GmbH
Leon A. Petrosyan
David W.K. Yeung
Editors
ICM
Millennium
Lectures
on Games
With 48 Figures
and 27 Tables
, Springer
Professor Leon A. Petrosyan
St. Petersburg State University
Faculty of Applied Mathematics & Controll Processes
Petrodyvorets
198904 St. Petersburg, Russian Federation
Professor David W. K. Yeung
Centre of Game Theory
Hong Kong Baptist University
Kowloon Tong
Hong Kong, PR China
and
Centre of Game Theory
St. Petersburg State University
Petrodyvorets
198904 St. Petersburg, Russian Federation
ISBN 978-3-642-05618-5 ISBN 978-3-662-05219-8 (eBook)
DOI 10.1007/978-3-662-05219-8
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Preface
Since the first Congress in Zürich in 1897, the ICM has been an eagerly-
awaited event every four years. Many of these occasions are celebrated for
historie developments and seminal contributions to mathematics. 2002 marks
the year of the 24th ICM, the first of the new millennium. Also historie is
the first ICM Satellite Conference devoted to game theory and applications.
It is one of those rare occasions, in which masters of the field are able to meet
under congenial surroundings to talk and share their gathered wisdom.
As is usually the case in ICM meetings, participants of the ICM Satellite
Conference on Game Theory and Applications (Qingdao, August 2(02) hailed
from the four corners of the world. In addition to presentations of high qual-
ity research, the program also included twelve invited plenary sessions with
distinguished speakers. This volume, which gathers together selected papers
read at the conference, is divided into four sections:
(I) Foundations, Concepts, and Structure.
(II) Equilibrium Properties.
(III) Applications to the Natural and Social Sciences.
(IV) Computational Aspects of Games.
The papers in Section I explore fundamental ideas, leading to new and
analytically interesting analysis of current problems as weIl as new games
and new modeling approaches in games. In Section II, seven papers discuss
issues in the solution of games, and present a number of potentially very
fruitful ideas regarding game equilibrium under different assumptions and
conditions. Section III is devoted to applications. In particular, the articles
on market structure and game-based computations would be of interest to
researehers and practitioners in commerce, industry, banking and finance, and
the public sector. Section IV focuses on the computational aspects of games:
both computational algorithms and computability of equilibria.
Twelve invited plenary lectures were delivered in a feast of ideas. However,
given that the distinguished lecturers were delivered before their audiences and
~ f>reface
that transcriptions from video recordings are likely to be insufficiently ace urate
to do justice to the subtle complexities of the reasoning, the editors have
reluctantly decided to just list the lectures in this preface. Readers anxious to
learn more about the great things discussed during the invited sessions can
rest assured that they will be more formally published in good time.
Among the invited lectures, remarlmble new ideas regarding solutions and
equilibria in games were presented by Reinhard Selten, "On Two Behavioral
Equilibrium Concepts" , Lloyd Shapley, "Convexing the Pareto Set by Individ-
ual Order-Preserving Transformations", and Dov Samet, "Ordinal Solutions
for Bargaining Problems". We can expect many analytically and practically
interesting new games to follow from the insights offered by Robert Simon,
"Games of Incomplete Information, Ergodie Theory, and the Measurability of
Equilibria" , Abraham Neyman, "Repeated Games with Bounded Descriptive
Strategie Complexity" , John Forbes Nash, "Projects Studying Cooperation in
Games through Modelling in terms of Formally Non-cooperative action in a
Repeated Game Context", and David Yeung, "Randomly Furcating Stochas-
tic Differential Games: A Paradigm for Interactive Decision-Making under
Sturcture Uncertainty". Finally, researehers of game modelling will discover
a cornucopia of inspiration in the lectures of Robert John Aumann, "Bayes
Rational Play", Michael Maschler, "Voting for Voters", Sergiu Hart, "Simple
Adaptive Strategies" , Leon Petrosjan, "Bargaining in Dynamic Games" , and
Sylvain Sorin, "The Operator Approach to Zero-Sum Repeated Games".
The editors would like to thank Qingdao University and the Organizing
Committee of the Conference for hosting this historie event, and the Academic
Committee for striving to maintain the great ICM tradition in the presentation
of high quality papers and the dissemination of thought-provoking ideas.
We trust that the ICM Millenium Lectures on Games will prove to be a
volume that researehers in game theory and applications will treasure and
re-read in the years to come.
Leon A. Petrosyan and David W. K. Yeung
St. Petersburg, January 2003
Contents
Part I Foundations, Concepts, and Structure
Stable Schedule Matching under Revealed Preference
A. Alkan, D. GaZe................................................ 3
Banzhaf Permission Values for Games with aPermission
Structure
Rene van den Brink ............. ................................. 21
Moral Hazard in Teams Revisited
Baomin Dong ................................................... 47
Endogenous Determination of Utility
Functions: An Evolutionary Approach
Alexander A. Vasin .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 75
N-person Prisoner's Dilemma with Mutual Choice by
Agent-based Modeling
Tomohisa Yamashita, Azuma Ohuchi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 89
Randomly-Furcating Stochastic Differential Games
David W K. Yeung .............................................. 107
On Modulo 2 Game
Chizhong Zhou .................................................. 127
Bargaining in Dynamic Games
Leon A. Petrosyan ............................................... 139
VIII Contents
Part 11 Equlllbrium Properties
Extensions of Hart and Mas-Colell's Consisteney to Eflieient,
Linear, and Symmetrie Values for TU-Games
Theo Driessen, Tadeusz Radzik .................................... 147
On the Stablllty of Coo peration Struetures
Guillaume Haeringer ............................................. 167
Time-Consistent Imputation Distribution
Proeedure for Multistage Garne
Victor V. Zakharov, Maria B. Dementieva .......................... 185
Rationality of Final Declsions Leads to Sequential Equlllbrium
Ryuichiro Ishikawa, Takashi Matsuhisa ............................. 193
The Core in the Presenee of Externalities
Ldszl6 A. K6czy ................................................. 205
Network Topology and the Eflicleney of Equilibriurn
Igal Milchtaich .................................................. 233
Essential Components of the Set of Weakly Pareto-Nash
Equilibria for Multiobjeetive Generalized Garnes
Hui Yang ....................................................... 267
Part 111 Applieations to the Natural and Soelal Sclenees
Diseretization of Information Colleeting Situations and
Continuity of Compensation Rules
R. Branzei, F. Scotti, S. Tijs, A. Torre ............................. 281
Some Variation Caleulus Problems in Dynamie Games on 2D
Surfaees
Arik Melikyan, Naira Hovakimyan ................................. 287
On The Chinese Postman Game
Daniel Granot, Herbert Hamers, Jeroen Kuipers, Michael Maschler . .... 297
Farsighted Stabillty in Duopoly Markets with Produet
Differentiation
Takeshi Masuda, Shigeo Muto ..................................... 305
International Emissions 'ftading with Agent-Based Simulation
and Web-Based Gaming
Hideyuki Miruta, Yoshiki Yamagata ................................ 319
Contents IX
Comparlson of two Economic Models for a Business-to-
Business Exchange
Nikolay Zenkevich, Suzhou Huang .................................. 335
Part IV Computational Aspects of Games
Computability of N ash Equilibrium
Hidetoshi Tashiro ................................................ 349
Numerical Algorithm for Solving Cross-Coupled
Multiparameter Algebraic Riccati Equations ofMultimodeling
Systems Related to Nash Games
Hiroaki Mukaidani, Tetsu Shimomura, Hua Xu ...................... 359
Effects of Symmetry on Paradoxes in Non-Cooperative
Dlstributed Computing
Hisao Kameda, Yoshihisa Hosokawa ............................... . 373
Computation of Stackelberg Trajectories in a Class of Linear
Differential Games on Plane
Sergei Osipov, Anatolii Kleimenov ................................. 391
AGame Theoretic Approach to Value Information in Data
Mining
Yücel Saygin, Arnold Reisman, Yun Tong Wang ..................... 397
Part I
Foundations, Concepts, and Structure
Stahle Schedule Matching under
Revealed Preference*
A. Alkan l and D. Gale2
1 Sabanci University, 81474 Thzla, Istanbul, Thrkey
E-mail: alkanesabanciuniv . edu
2 U. C., Berkeley, Ca. 94720, USA
E-mail:
