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Learning Rationality Parameters in Potential Games

Joint work with Gabriele Dragotto, Jaime Fernández Fisac and Bartolomeo Stellato. IEEE CDC Link.

Abstract: We propose a stochastic first-order algorithm to learn the rationality parameters of simultaneous and non-cooperative potential games, i.e., the parameters of the agents’ optimization problems. Our technique combines an active-set step that enforces that the agents play at a Nash equilibrium and an implicit-differentiation step to update the estimates of the rationality parameters. We detail the convergence properties of our algorithm and perform numerical experiments on Cournot and congestion games, showing that our algorithm effectively finds high-quality solutions (in terms of out-of- sample loss) and scales to large datasets.