Using simulated annealing to calculate the trembles of trembling hand perfection

S. McDonald, L. Wagner

Research output: Contribution to conferencePaperpeer-review

2 Citations (Scopus)

Abstract

Within the literature on noncooperative game theory, there have been a number of algorithms which will compute Nash equilibria. We show that the family of algorithms known as Markov chain Monte Carlo (MCMC) can be used to calculate Nash equilibria. MCMC is a type of Monte Carlo simulation that relies on Markov chains to ensure its regularity conditions. MCMC has been widely used throughout the statistics and optimization literature, where variants of this algorithm are known as simulated annealing. We show that there is interesting connection between the trembles that underlie the functioning of this algorithm and the type of Nash refinement known as trembling hand perfection. We show that it is possible to use simulated annealing to compute this refinement.

Original languageEnglish
Pages2482-2489
Number of pages8
DOIs
Publication statusPublished - 2003
Event2003 Congress on Evolutionary Computation, CEC 2003 - Canberra, ACT, Australia
Duration: 8 Dec 200312 Dec 2003

Conference

Conference2003 Congress on Evolutionary Computation, CEC 2003
Country/TerritoryAustralia
CityCanberra, ACT
Period8/12/0312/12/03

ASJC Scopus subject areas

  • Computational Mathematics

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