The truth behind the myth of the folk theorem

  • Authors:
  • Joseph Y. Halpern;Rafael Pass;Lior Seeman

  • Affiliations:
  • Cornell University, Ithaca, NY, USA;Cornell University, Ithaca, NY, USA;Cornell University, Ithaca, NY, USA

  • Venue:
  • Proceedings of the 5th conference on Innovations in theoretical computer science
  • Year:
  • 2014

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Abstract

We study the problem of computing an ε-Nash equilibrium in repeated games. Earlier work by Borgs et al. [2010] suggests that this problem is intractable. We show that if we make a slight change to their model---modeling the players as polynomial-time Turing machines that maintain state (rather than stateless polynomial-time Turing machines)---and make some standard cryptographic hardness assumptions (the existence of public key encryption), the problem can actually be solved in polynomial time.