Graphical potential games
arXiv:1405.1481 · doi:10.1016/j.jet.2016.03.010
Abstract
We study the class of potential games that are also graphical games with respect to a given graph of connections between the players. We show that, up to strategic equivalence, this class of games can be identified with the set of Markov random fields on . From this characterization, and from the Hammersley-Clifford theorem, it follows that the potentials of such games can be decomposed to local potentials. We use this decomposition to strongly bound the number of strategy changes of a single player along a better response path. This result extends to generalized graphical potential games, which are played on infinite graphs.
Accepted to the Journal of Economic Theory