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Galit Ashkenazi-Golan

Publications and source records attributed to Galit Ashkenazi-Golan.

16 recordsLinked to original sources
arXiv2026

Delegate Pricing to Algorithms: When Slow and Steady Wins the Race

We study the strategic design of learning algorithms in a canonical continuous-time pricing game. We introduce a meta-game in which firms select learning rates for a gradient dynamic, evaluating payoffs as the discounted sum of profits accrued along the entire learning path. We uncover a fundamental dichotomy driven by stage-game incentives: if the stage game exhibits strategic substitutability, firms unambiguously prefer the fastest possible algorithms to rapidly exploit a gradually adjusting opponent. Under strategic complementarity, however, an excessively fast algorithm accelerates the rival's competitive response, destroying transitional profit margins. Even though the competitive price is a strictly dominant action in the underlying stage game, we prove that firms optimally design sluggish algorithms, extracting surplus during a prolonged convergence to the competitive equilibrium.

econ.TH↗
arXiv2026

Refundable Deposits: How to Restore Cooperation in Finitely Repeated Games

While infinitely repeated games admit a rich set of Nash equilibria, finitely repeated games typically have a much smaller and often inefficient one. We show how to enlarge this set using deposits: in each period a player may place a refundable sum with a neutral intermediary, returned when the game ends and forfeited following a deviation. Paying these deposits is voluntary and incentive compatible at every stage, so no commitment by the players is assumed, the only commitment required being that of the intermediary to a refund rule fixed before play begins. The mechanism sustains payoff profiles more efficient than those of the standard equilibria, without altering the underlying game and without transfers between players. We demonstrate it on the prisoner's dilemma, a congestion game, and a public goods game, all settings where cooperation cannot emerge in the standard finitely repeated version. We also apply it to a dynamic common-pool resource, suggesting that the construction extends beyond repeated stage-games.

cs.GT↗
arXiv2025

Games with infinite past

We study multi-player games with perfect information and general payoff function, where the set of stages is the set of non-positive integers $\{\ldots,-2,-1,0\}$. We define two related equilibrium concepts: one considering only deviations at finitely many stages and another considering all deviations. We show that (i) The sets of equilibrium plays coincide for the two equilibrium concepts, provided that at least two players are active along each infinite play. (ii) In win-lose games, the game has an equilibrium if the winning sets have Borel-rank at most 2, and we provide a counter-example showing that this is no longer true for Borel-rank 3. (iii) In general non-zero-sum games, the game has an equilibrium if the payoff functions are continuous, for example, with reversed-time discounted payoffs. The challenge for all these results is that not all strategy profiles admit a consistent infinite play, hampering the use of backward induction arguments.

math.OC↗
arXiv2025

Simultaneous Best-Response Dynamics in Random Potential Games

This paper examines the convergence behaviour of simultaneous best-response dynamics in random potential games. We provide a theoretical result showing that, for two-player games with sufficiently many actions, the dynamics converge quickly to a cycle of length two. This cycle lies within the intersection of the neighbourhoods of two distinct Nash equilibria. For three players or more, simulations show that the dynamics converge quickly to a Nash equilibrium with high probability. Furthermore, we show that all these results are robust, in the sense that they hold in non-potential games, provided the players' payoffs are sufficiently correlated. We also compare these dynamics to gradient-based learning methods in near-potential games with three players or more, and observe that simultaneous best-response dynamics converge to a Nash equilibrium of comparable payoff substantially faster.

cs.GT↗
arXiv2024

A Taste for Variety

A decision maker repeatedly chooses one of a finite set of actions. In each period, the decision maker's payoff depends on fixed basic payoff of the chosen action and the frequency with which the action has been chosen in the past. We analyze optimal strategies associated with three types of evaluations of infinite payoffs: discounted present value, the limit inferior, and the limit superior of the partial averages. We show that when the first two are the evaluation schemes, a stationary strategy can always achieve the best possible outcome. However, for the latter evaluation scheme, a stationary strategy can achieve the best outcome only if all actions that are chosen with strictly positive frequency by an optimal stationary strategy have the same basic payoff.

econ.TH↗
arXiv2024

Approximations of expectations under infinite product measures

We are given a bounded Borel-measurable real-valued function on a product of countably many Polish spaces, and a product probability measure. We are interested in points in the product space that can be used to approximate the expected value of this function. We define two notions. A point is called a weak $ε$-approximation, where $ε\geq 0$, if the Dirac measure on this point, except in finitely many coordinates where another measure can be taken, gives an expected value that is $ε$-close to the original expected value. A point is called a strong $ε$-approximation if the same holds under the restriction that in those finitely many coordinates the measure is equal to the original one. We prove that both the set of weak 0-approximation points and the set of strong $ε$-approximation points, for any $ε>0$, have measure 1 under the original measure. Finally, we provide two applications: (i) in Game Theory on the minmax guarantee levels of the players in games with infinitely many players, and (ii) in Decision Theory on the set of feasible expected payoffs in infinite duration problems.

math.PR↗
arXiv2024

Granular DeGroot Dynamics -- a Model for Robust Naive Learning in Social Networks

We study a model of opinion exchange in social networks where a state of the world is realized and every agent receives a zero-mean noisy signal of the realized state. It is known from [Golub and Jackson 2010] that under DeGroot dynamics [DeGroot 1974] agents reach a consensus that is close to the state of the world when the network is large. The DeGroot dynamics, however, is highly non-robust and the presence of a single ``stubborn agent'' that does not adhere to the updating rule can sway the public consensus to any other value. We introduce a variant of DeGroot dynamics that we call \emph{ $\frac{1}{m}$-DeGroot}. $\frac{1}{m}$-DeGroot dynamics approximates standard DeGroot dynamics to the nearest rational number with $m$ as its denominator and like the DeGroot dynamics it is Markovian and stationary. We show that in contrast to standard DeGroot dynamics, $\frac{1}{m}$-DeGroot dynamics is highly robust both to the presence of stubborn agents and to certain types of misspecifications.

math.PR↗
arXiv2022

Markovian Persuasion with Two States

This paper addresses the question of how to best communicate information over time in order to influence an agent's belief and induced actions in a model with a binary state of the world that evolves according to a Markov process, and with a finite number of actions. We characterize the sender's optimal message strategy in the limit, as the length of each period decreases to zero. The optimal strategy is not myopic. Depending on the agent's beliefs, sometimes no information is revealed, and sometimes the agent's belief is split into two well-chosen posterior beliefs.

econ.TH↗
arXiv2022

Absorbing Blackwell Games

It was shown in Flesch and Solan (2022) with a rather involved proof that all two-player stochastic games with finite state and action spaces and shift-invariant payoffs admit an $ε$-equilibrium, for every $ε>0$. Their proof also holds for two-player absorbing games with tail-measurable payoffs. In this paper we provide a simpler proof for the existence of $ε$-equilibrium in two-player absorbing games with tail-measurable payoffs, by combining recent mathematical tools for such payoff functions with classical tools for absorbing games.

math.OC↗
arXiv2022

Regularity of the minmax value and equilibria in multiplayer Blackwell games

A real-valued function $φ$ that is defined over all Borel sets of a topological space is \emph{regular} if for every Borel set $W$, $φ(W)$ is the supremum of $φ(C)$, over all closed sets $C$ that are contained in $W$, and the infimum of $φ(O)$, over all open sets $O$ that contain $W$. We study Blackwell games with finitely many players. We show that when each player has a countable set of actions and the objective of a certain player is represented by a Borel winning set, that player's minmax value is regular. We then use the regularity of the minmax value to establish the existence of $\varepsilon$-equilibria in two distinct classes of Blackwell games. One is the class of $n$-player Blackwell games where each player has a finite action space and an analytic winning set, and the sum of the minmax values over the players exceeds $n-1$. The other class is that of Blackwell games with bounded upper semi-analytic payoff functions, history-independent finite action spaces, and history-independent minmax values. For the latter class, we obtain a characterization of the set of equilibrium payoffs.

math.OC↗
arXiv2021

I Want to Tell You? Maximizing Revenue in First-Price Two-Stage Auctions

A common practice in many auctions is to offer bidders an opportunity to improve their bids, known as a Best and Final Offer (BAFO) stage. This final bid can depend on new information provided about either the asset or the competitors. This paper examines the effects of new information regarding competitors, seeking to determine what information the auctioneer should provide assuming the set of allowable bids is discrete. The rational strategy profile that maximizes the revenue of the auctioneer is the one where each bidder makes the highest possible bid that is lower than his valuation of the item. This strategy profile is an equilibrium for a large enough number of bidders, regardless of the information released. We compare the number of bidders needed for this profile to be an equilibrium under different information settings. We find that it becomes an equilibrium with fewer bidders when less additional information is made available to the bidders regarding the competition. It follows that when the number of bidders is a priori unknown, there are some advantages to the auctioneer to not reveal information.

cs.GT↗
arXiv2020

Absorption Paths and Equilibria in Quitting Games

We study quitting games and define the concept of absorption paths, which is an alternative definition to strategy profiles that accomodates both discrete time aspects and continuous time aspects, and is parameterized by the total probability of absorption in past play rather than by time. We then define the concept of sequentially 0perfect absorption paths, which are shown to be limits of $ε$-equilibrium strategy profiles as $ε$ goes to 0. We finally identify a class of quitting games that possess sequentially 0-perfect absorption paths.

math.OC↗
arXiv2019

Reachability and safety objectives in Markov decision processes on long but finite horizons

We consider discrete-time Markov decision processes in which the decision maker is interested in long but finite horizons. First we consider reachability objective: the decision maker's goal is to reach a specific target state with the highest possible probability. Formally, strategy $σ$ overtakes another strategy $σ'$, if the probability of reaching the target state within horizon $t$ is larger under $σ$ than under $σ'$, for all sufficiently large $t\in\NN$. We prove that there exists a pure stationary strategy that is not overtaken by any pure strategy nor by any stationary strategy, under some condition on the transition structure and respectively under genericity. A strategy that is not overtaken by any other strategy, called an overtaking optimal strategy, does not always exist. We provide sufficient conditions for its existence. Next we consider safety objective: the decision maker's goal is to avoid a specific state with the highest possible probability. We argue that the results proven for reachability objective extend to this model. We finally discuss extensions of our results to two-player zero-sum perfect information games.

math.OC↗
arXiv2019

Characterizing the Value Functions of Polynomial Games

We provide a characterization of the set of real-valued functions that can be the value function of some polynomial game. Specifically, we prove that a function $u : \dR \to \dR$ is the value function of some polynomial game if and only if $u$ is a continuous piecewise rational function.

math.OC↗
arXiv2019

Solving Two-State Markov Games with Incomplete Information on One Side *

We study the optimal use of information in Markov games with incomplete information on one side and two states. We provide a finite-stage algorithm for calculating the limit value as the gap between stages goes to 0, and an optimal strategy for the informed player in the limiting game in continuous time. This limiting strategy induces an-optimal strategy for the informed player, provided the gap between stages is small. Our results demonstrate when the informed player should use his information and how.

math.OC↗