Brown-von Neumann-Nash Dynamics: The Continuous Strategy Case

In John Nash’s proofs for the existence of (Nash) equilibria based on Brouwer’s theorem, an iteration mapping is used. A continuous— time analogue of the same mapping has been studied even earlier by Brown and von Neumann. This differential equation has recently been suggested as a plausible boundedly rational learning process in games. In the current paper we study this Brown—von Neumann—Nash dynamics for the case of continuous strategy spaces. We show that for continuous payoff functions, the set of rest points of the dynamics coincides with the set of Nash equilibria of the underlying game. We also study the asymptotic stability properties of rest points. While strict Nash equilibria may be unstable, we identify sufficient conditions for local and global asymptotic stability which use concepts developed in evolutionary game theory.

Variational Inequality Approach to Stochastic Nash Equilibrium Problems with an Application to Cournot Oligopoly

In this note we investigate stochastic Nash equilibrium problems by means of monotone variational inequalities in probabilistic Lebesgue spaces. We apply our approach to a class of oligopolistic market equilibrium problems where the data are known through their probability distributions.Comment: 19 pages, 2 table

Brown-von Neumann-Nash dynamics : the continuous strategy case

In John Nash’s proofs for the existence of (Nash) equilibria based on Brouwer’s theorem, an iteration mapping is used. A continuous- time analogue of the same mapping has been studied even earlier by Brown and von Neumann. This differential equation has recently been suggested as a plausible boundedly rational learning process in games. In the current paper we study this Brown-von Neumann-Nash dynamics for the case of continuous strategy spaces. We show that for continuous payoff functions, the set of rest points of the dynamics coincides with the set of Nash equilibria of the underlying game. We also study the asymptotic stability properties of rest points. While strict Nash equilibria may be unstable, we identify sufficient conditions for local and global asymptotic stability which use concepts developed in evolutionary game theory

Road network maintenance and repair considering day-to-day traffic dynamics and transient congestion

Road maintenance and repair (M&R) are essential for keeping the performance of traffic infrastructure at a satisfactory level, and extending their lifetime to the fullest extent possible. For road networks, effective M&R plans should not be constructed in a myopic or ad-hoc fashion regardless of the subsequent benefits and costs associated with those projects considered. A hallmark of road M&R studies is the use of user equilibrium (UE) models to predict network traffic for a given set of road conditions with or without M&R. However, UE approaches ignore the traffic disequilibrium states and transient congestion as a result of M&R derived disruptions to network traffic on a day-to-day (DTD) time scale, which could produce additional substantial travel costs. As shown in the numerical studies on a M&R plan of the Sioux Falls network, the additional maintenance derived travel cost is about 4 billion, which is far exceed the actual M&R construction cost of 0.2 billion. Therefore, it is necessary to recognise the substantial social costs induced by maintenance-derived disruptions in the form of transient congestion when planning M&R. This realistic and pressing issue is not properly addressed by the road M&R planning problems with traffic equilibrium constraints. This thesis proposes a dual-time-scale road network M&R model aiming to simultaneously capture the long-term effects of M&R activities under traffic equilibria, and the maintenance-derived transient congestion using day-to-day (DTD) traffic evolutionary dynamics. The notion of ‘day’ is arbitrarily defined (e.g. weeks or months). The proposed M&R model consists of three sub-models: (1) a within-day dynamic network loading (DNL) model; (2) a day-to-day dynamic traffic assignment (DTD DTA) model; and (3) a day-to-day road quality model. The within-day traffic dynamics is captured by the Lighthill-Whitham-Richards (LWR) fluid dynamic network loading model. The day-to-day phase of the traffic dynamics specify travellers’ route and departure time choices in a stochastic manner based on a sequential mixed multinomial or nested Logit model. Travel information sharing behaviour is further integrated into this macroscopic doubly dynamic (both within-day and day-to-day dynamic) traffic assignment (DDTA) model to account for the impact of incomplete information on travel experiences. A deterministic day-to-day road quality model based on an exponential form of traffic flow is employed to govern the road deterioration process, where a quarter-car index (QI) is applied. All these dynamics are incorporated in a holistic dual-time-scale M&R model, which captures realistic phenomena associated with short-term and long-term effects of M&R, including physical queuing and spillback, road capacity reduction, temporal-spatial shift of congestion due to on-going M&R activities, and the tendency to converge to an equilibrium after M&R actions. Following the dual-time-scale road network M&R model, a bi-level road M&R optimisation model is proposed, where the aforementioned three sub-models are incorporated into the lower-level problem, while the upper-level is to minimise M&R expenditure and network travel costs while maintaining a satisfactory level of road quality. The M&R planning horizon is long yet finite (e.g. years or decades). A ‘quality-usage’ feedback mechanism is investigated in the proposed bi-level M&R model, namely, (1) the DTD road quality evolution as a result of DTD traffic loads and the M&R effectiveness; and (2) the evolution of DTD traffic in response to both DTD road deterioration and the improved road quality after M&R activities. The effectiveness of developed M&R optimisation model is demonstrated through case studies on the Sioux Falls network. A metaheuristic Genetic Algorithm (GA) approach is employed to solve the M&R problems given its highly nonlinear, nonconvex and non-differentiable nature. Explicit travellers’ choice behaviour dynamics and complex traffic phenomena such as network paradoxes arising from M&R activities are illustrated. Through a comparison with the results under the dynamic user equilibrium (DUE) method, the proposed DTD method achieves significant reduction in network travel cost of $ 25 million, approximately 20% of the total cost. This points to the benefit of using the DTD dynamics for capturing network’s responses to M&R in a more realistic way. The M&R model proposed in this thesis could provide valuable managerial insights for road M&R planning agencies.Open Acces

Mean-Field-Type Games in Engineering

A mean-field-type game is a game in which the instantaneous payoffs and/or the state dynamics functions involve not only the state and the action profile but also the joint distributions of state-action pairs. This article presents some engineering applications of mean-field-type games including road traffic networks, multi-level building evacuation, millimeter wave wireless communications, distributed power networks, virus spread over networks, virtual machine resource management in cloud networks, synchronization of oscillators, energy-efficient buildings, online meeting and mobile crowdsensing.Comment: 84 pages, 24 figures, 183 references. to appear in AIMS 201