A differentiable homotopy method to compute perfect equilibria (Q2220655)

This paper aims to develop a differentiable homotopy method for computing perfect equilibria of normal-form games. The authors constitute an artificial game by introducing a continuously differentiable function of an extra variable; the artificial game defines a differentiable homotopy mapping and establishes the existence of a smooth path to a perfect equilibrium. For numerical comparison, the authors also describe a simplicial homotopy method; the differentiable homotopy method is numerically stable and efficient. and significantly outperforms the simplicial homotopy method especially when the problem is large.