A Game Theoretic Analysis of the Three-Gambler Ruin Game

Fuente: arXiv
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Autori principali: Kehagias, Ath., Gkyzis, G., Karakoulakis, A., Kyprianidis, A.
Natura: Preprint
Pubblicazione: 2024
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author Kehagias, Ath.
Gkyzis, G.
Karakoulakis, A.
Kyprianidis, A.
author_facet Kehagias, Ath.
Gkyzis, G.
Karakoulakis, A.
Kyprianidis, A.
contents We study the following game. Three players start with initial capitals of $s_{1},s_{2},s_{3}$ dollars; in each round player $P_{m}$ is selected with probability $\frac{1}{3}$; then \emph{he} selects player $P_{n}$ and they play a game in which $P_{m}$ wins from (resp. loses to) $P_{n}$ one dollar with probability $p_{mn}$ (resp. $p_{nm}=1-p_{mn}$). When a player loses all his capital he drops out; the game continues until a single player wins by collecting everybody's money. This is a "strategic" version of the classical Gambler's Ruin game. It seems reasonable that a player may improve his winning probability by judicious selection of which opponent to engage in each round. We formulate the situation as a \emph{stochastic game} and prove that it has at least one Nash equilibrium in deterministic stationary strategies.
format Preprint
id arxiv_https___arxiv_org_abs_2406_07878
institution arXiv
publishDate 2024
record_format arxiv
spellingShingle A Game Theoretic Analysis of the Three-Gambler Ruin Game
Kehagias, Ath.
Gkyzis, G.
Karakoulakis, A.
Kyprianidis, A.
Computer Science and Game Theory
Probability
We study the following game. Three players start with initial capitals of $s_{1},s_{2},s_{3}$ dollars; in each round player $P_{m}$ is selected with probability $\frac{1}{3}$; then \emph{he} selects player $P_{n}$ and they play a game in which $P_{m}$ wins from (resp. loses to) $P_{n}$ one dollar with probability $p_{mn}$ (resp. $p_{nm}=1-p_{mn}$). When a player loses all his capital he drops out; the game continues until a single player wins by collecting everybody's money. This is a "strategic" version of the classical Gambler's Ruin game. It seems reasonable that a player may improve his winning probability by judicious selection of which opponent to engage in each round. We formulate the situation as a \emph{stochastic game} and prove that it has at least one Nash equilibrium in deterministic stationary strategies.
title A Game Theoretic Analysis of the Three-Gambler Ruin Game
topic Computer Science and Game Theory
Probability
url https://arxiv.org/abs/2406.07878