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Locally-Aware Constrained Games on Networks

2020/11/19 by Guanze Peng, Peng, Guanze, Tao Li +7
Decision Sciences · Economics, Econometrics and Finance · Engineering · #Computer Science and Game Theory (cs.GT) #FOS: Computer and information sciences #FOS: Electrical engineering #Game Theory and Applications #Game Theory and Voting Systems #Infrastructure Resilience and Vulnerability Analysis #Systems and Control (eess.SY) #electronic engineering #information engineering

paper · pdf · doi:10.48550/arxiv.2011.10095

openalex publication_date 2020/11/19 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/28

Abstract

Network games have been instrumental in understanding strategic behaviors over networks for applications such as critical infrastructure networks, social networks, and cyber-physical systems. One critical challenge of network games is that the behaviors of the players are constrained by the underlying physical laws or safety rules, and the players may not have complete knowledge of network-wide constraints. To this end, this paper proposes a game framework to study constrained games on networks, where the players are locally aware of the constraints. We use awareness levels to capture the scope of the network constraints that players are aware of. We first define and show the existence of generalized Nash equilibria (GNE) of the game, and point out that higher awareness levels of the players would lead to a larger set of GNE solutions. We use necessary and sufficient conditions to characterize the GNE, and propose the concept of the dual game to show that one can convert a locally-aware constrained game into a two-layer unconstrained game problem. We use linear quadratic games as case studies to corroborate the analytical results, and in particular, show the duality between Bertrand games and Cournot games.%, where each layer comprises an unconstrained game.

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