Absolute optimal solution for a compact and convex game

Absolute optimal solution for a compact and convex game

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Article ID: iaor20126271
Volume: 224
Issue: 2
Start Page Number: 353
End Page Number: 361
Publication Date: Jan 2013
Journal: European Journal of Operational Research
Authors: ,
Keywords: programming: convex, optimization
Abstract:

This paper investigates the existence of absolute optimal solutions for a partition P in continuous and quasiconcave games. We show that the P‐consistency property introduced in the paper, together with the quasiconcavity and continuity of payoffs, permits the existence of P‐absolute optimal solutions in games with compact and convex strategy spaces. The P‐consistency property is a general condition that cannot be dispensed with for the existence of P‐absolute optimal solutions. We also characterize the existence of P‐absolute optimal solutions by providing necessary and sufficient conditions. Moreover, we suggest an algorithm for efficiently computing P‐absolute optimal solutions.

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