Power relations in Game Theory

TL;DR

This paper introduces a framework for modeling power relations in game theory using weighted utility functions and directed graphs, enabling the analysis of hierarchy, mutualism, and freedom effects on equilibria.

Contribution

It proposes a novel method to quantify power dynamics in games through graph-based utility modifications and global indices.

Findings

Power relations can be modeled with weighted utility functions.

Global indices like hierarchy and freedom influence game equilibria.

Graph representations effectively capture complex power structures.

Abstract

The concept of power among players can be expressed as a combination of their utilities. A player who obeys another takes into account the utility of the dominant one. Technically it is a matter of superimposing some weighted sum or product function onto the individual utility function, where the weights can be represented through directed graphs that reflect a situation of power among the players. It is then possible to define some global indices of the system, such as the level of hierarchy, mutualism and freedom, and measure their effects on game equilibria.