arXiv · 2606.25707
Equilibrium and Infeasibility: A new solution concept for games
Abstract
Addressing infeasibility in non-cooperative games has become an important topic, as many problems across different applications face this issue. In this paper, we propose a new solution concept for generalized games with possibly infeasible individual constraints. A solution is defined as the limit of a sequence of generalized Nash equilibria induced by games with penalty terms relaxing the individual constraints. Existence is established for a broad range of games and we provide conditions allowing to characterize a $\psi$-penalized solution as a strategy profile maximizing every player's utility over all her penalty minimizing strategies. A variation of Divide-the-Dollar serves as an illustrative example. We further establish the compatibility with the GNE and the solution to the Nash bargaining.
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Anne Reulke, Mikaël Touati, Rachid El-Azouzi. 2026-06-24. Equilibrium and Infeasibility: A new solution concept for games. https://arxiv.org/abs/2606.25707
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