2009/05/01 by Xi Chen, Xiaotie Deng, Shang-Hua Teng +1 · 579 citations
Decision Sciences · Economics, Econometrics and Finance · Mathematics · #Class (philosophy) #Combinatorics #Complexity class #Computer science #Discrete mathematics #Economic theories and models #Game Theory and Applications #Game Theory and Voting Systems #Game theory #Mathematical economics #Mathematics #Nash equilibrium #Polynomial #Time complexity
paper · doi:10.1145/1516512.1516516
published in Journal of the ACM 56(3), 1-57 (Association for Computing Machinery)
openalex publication_date 2009/05/01 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/29
We prove that Bimatrix, the problem of finding a Nash equilibrium in a two-player game, is complete for the complexity class PPAD (Polynomial Parity Argument, Directed version) introduced by Papadimitriou in 1991. Our result, building upon the work of Daskalakis et al. [2006a] on the complexity of four-player Nash equilibria, settles a long standing open problem in algorithmic game theory. It also serves as a starting point for a series of results concerning the complexity of two-player Nash equilibria. In particular, we prove the following theorems: —Bimatrix does not have a fully polynomial-time approximation scheme unless every problem in PPAD is solvable in polynomial time. —The smoothed complexity of the classic Lemke-Howson algorithm and, in fact, of any algorithm for Bimatrix is not polynomial unless every problem in PPAD is solvable in randomized polynomial time. Our results also have a complexity implication in mathematical economics: —Arrow-Debreu market equilibria are PPAD -hard to compute.