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Dynamic Population Games: A Tractable Intersection of Mean-Field Games and Population Games

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arXiv:2104.14662v2 Announce Type: replace-cross
Abstract: In many real-world large-scale decision problems, self-interested agents have individual dynamics and optimize their own long-term payoffs. Important examples include the competitive access to shared resources (e.g., roads, energy, or bandwidth) but also non-engineering domains like epidemic propagation and control. These problems are natural to model as mean-field games. However, existing mathematical formulations of mean field games have had limited applicability in practice, since they require solving non-standard initial-terminal-value problems that are tractable only in limited special cases. In this letter, we propose a novel formulation, along with computational tools, for a practically relevant class of Dynamic Population Games (DPGs), which correspond to discrete-time, finite-state-and-action, stationary mean-field games. Our main contribution is a mathematical reduction of Stationary Nash Equilibria (SNE) in DPGs to standard Nash Equilibria (NE) in static population games. This reduction is leveraged to guarantee the existence of a SNE, develop an evolutionary dynamics-based SNE computation algorithm, and derive simple conditions that guarantee stability and uniqueness of the SNE. Additionally, DPGs enable us to tractably incorporate multiple agent types, which is of particular importance to assess fairness concerns in resource allocation problems. We demonstrate our results by computing the SNE in two complex application examples: fair resource allocation with heterogeneous agents and control of epidemic propagation.
Open source software for SNE computation: https://gitlab.ethz.ch/elokdae/dynamic-population-games

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