The complexity of computing a Nash equilibrium

C Daskalakis, PW Goldberg… - Communications of the …, 2009 - dl.acm.org
Communications of the ACM, 2009dl.acm.org
How long does it take until economic agents converge to an equilibrium? By studying the
complexity of the problem of computing a mixed Nash equilibrium in a game, we provide
evidence that there are games in which convergence to such an equilibrium takes
prohibitively long. Traditionally, computational problems fall into two classes: those that have
a polynomial-time algorithm and those that are NP-hard. However, the concept of NP-
hardness cannot be applied to the rare problems where" every instance has a solution"---for …
How long does it take until economic agents converge to an equilibrium? By studying the complexity of the problem of computing a mixed Nash equilibrium in a game, we provide evidence that there are games in which convergence to such an equilibrium takes prohibitively long. Traditionally, computational problems fall into two classes: those that have a polynomial-time algorithm and those that are NP-hard. However, the concept of NP-hardness cannot be applied to the rare problems where "every instance has a solution"---for example, in the case of games Nash's theorem asserts that every game has a mixed equilibrium (now known as the Nash equilibrium, in honor of that result). We show that finding a Nash equilibrium is complete for a class of problems called PPAD, containing several other known hard problems; all problems in PPAD share the same style of proof that every instance has a solution.
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