In game theory, a trusted mediator acting on behalf of the players can enable the attainment of correlated equilibria, which may provide better payoffs than those available from the Nash equilibria alone. We explore the approach of replacing the trusted mediator with an unconditionally secure sampling protocol that jointly generates the players' actions. We characterize the joint distributions that can be securely sampled by malicious players via protocols using error-free communication. This class of distributions depends on whether players may speak simultaneously (“cheap talk”) or must speak in turn (“polite talk”). In applying sampling protocols toward attaining correlated equilibria with rational players, we observe that security against malicious protocols may be much stronger than necessary. We propose the concept of secure sampling by rational players, and show that many more distributions are feasible given certain utility functions. However, the payoffs attainable via secure sampling by malicious players are a dominant subset of the rationally attainable payoffs.
In game theory, a trusted mediator acting on behalf of the players can enable the attainment of correlated equilibria, which may provide better payoffs than those available from the Nash equilibria alone. We explore the approach of replacing the trusted mediator with an unconditionally secure sampling protocol that jointly generates the players' actions. We characterize the joint distributions that can be securely sampled by malicious players via protocols using error-free communication. This class of distributions depends on whether players may speak simultaneously (“cheap talk”) or must speak in turn (“polite talk”). In applying sampling protocols toward attaining correlated equilibria with rational players, we observe that security against malicious protocols may be much stronger than necessary. We propose the concept of secure sampling by rational players, and show that many more distributions are feasible given certain utility functions. However, the payoffs attainable via secure sampling by malicious players are a dominant subset of the rationally attainable payoffs.
We revisit the question of whether cryptographic protocols can replace correlated equilibria mediators in two-player strategic games. This problem was first addressed by Dodis, Halevi and Rabin (CRYPTO 2000), who suggested replacing the mediator with a secure protocol and proved that their solution is stable in the Nash equilibrium (NE) sense, provided that the players are computationally bounded. We show that there exist two-player games for which no cryptographic protocol can implement the mediator in a sequentially rational way; that is, without introducing empty threats. This explains why all solutions so far were either sequentially unstable, or were restricted to a limited class of correlated equilibria (specifically, those that do not dominate any NE, and hence playing them does not offer a clear advantage over playing any NE). In the context of computational NE, we classify necessary and sufficient cryptographic assumptions for implementing a mediator that allows to achieve a given utility profile of a correlated equilibrium. The picture that emerges is somewhat different than the one arising in semi-honest secure two-party computation. Specifically, while in the latter case every functionality is either “complete” (i.e., implies Oblivious Transfer) or “trivial” (i.e., can be securely computed unconditionally), in the former there exist some “intermediate” utility profiles whose implementation is equivalent to the existence of one-way functions. These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.
We revisit the question of whether cryptographic protocols can replace correlated equilibria mediators in two-player strategic games. This problem was first addressed by Dodis, Halevi and Rabin (CRYPTO 2000), who suggested replacing the mediator with a secure protocol and proved that their solution is stable in the Nash equilibrium (NE) sense, provided that the players are computationally bounded. We show that there exist two-player games for which no cryptographic protocol can implement the mediator in a sequentially rational way; that is, without introducing empty threats. This explains why all solutions so far were either sequentially unstable, or were restricted to a limited class of correlated equilibria (specifically, those that do not dominate any NE, and hence playing them does not offer a clear advantage over playing any NE). In the context of computational NE, we classify necessary and sufficient cryptographic assumptions for implementing a mediator that allows to achieve a given utility profile of a correlated equilibrium. The picture that emerges is somewhat different than the one arising in semi-honest secure two-party computation. Specifically, while in the latter case every functionality is either “complete" (i.e., implies Oblivious Transfer) or “trivial " (i.e., can be securely computed unconditionally), in the former there exist some “intermediate " utility profiles whose implementation is equivalent to the existence of one-way functions. 1
The field of rational cryptography considers the design of cryptographic protocols in the presence of rational agents seeking to maximize local utility functions. This departs from the standard secure multiparty computation setting, where players are assumed to be either honest or malicious. We detail the construction of both a two-party and a multiparty game theoretic framework for constructing rational cryptographic protocols. Our framework specifies the utility function assumptions necessary to realize the privacy, correctness, and fairness guarantees for protocols. We demonstrate that our framework correctly models cryptographic protocols, such as rational secret sharing, where existing work considers equilibrium concepts that yield unreasonable equilibria. Similarly, we demonstrate that cryptography may be applied to the game theoretic domain, constructing an auction market not realizable in the original formulation. Additionally, we demonstrate that modeling players as rational agents allows us to design a protocol that destabilizes coalitions. Thus, we establish a mutual benefit from combining the two fields, while demonstrating the applicability of our framework to real-world market environments. We also give an application of game theory to adversarial interactions where cryptography is not necessary. Specifically, we consider adversarial machine learning, where the adversary is rational and reacts to the presence of a data miner. We give a general extension to classification algorithms that returns greater expected utility for the data miner than existing classification methods.
Abstract. In this work we use cryptography to solve a game-theoretic problem which arises naturally in the area of two party strategic games. The standard game-theoretic solution concept for such games is that of an equilibrium, which is a pair of “self-enforcing ” strategies making each player’s strategy an optimal response to the other player’s strategy. It is known that for many games the expected equilibrium payoffs can be much higher when a trusted third party (a “mediator”) assists the players in choosing their moves (correlated equilibria), than when each player has to choose its move on its own (Nash equilibria). It is natural to ask whether there exists a mechanism that eliminates the need for the mediator yet allows the players to maintain the high payoffs offered by mediator-assisted strategies. We answer this question affirmatively provided the players are computationally bounded and can have free communication (so-called “cheap talk”) prior to playing the game. The main building block of our solution is an efficient cryptographic protocol to the following Correlated Element Selection problem, which is of independent interest. Both Alice and Bob know a list of pairs (a1, b1)... (an, bn) (possibly with repetitions), and they want to pick a random index i such that Alice learns only ai and Bob learns only bi. Our solution to this problem has constant number of rounds, negligible error probability, and uses only very simple zero-knowledge proofs. We then show how to incorporate our cryptographic protocol back into a game-theoretic setting, which highlights some interesting parallels between cryptographic protocols and extensive form games. 1
Participants in e-commerce and other forms of online collaborations tend to be selfish and rational, and therefore game theory has been recognized as particularly relevant to this area. In many common games, the joint strategy of the players is described by a list of pairs of actions, and one of those pairs is chosen according to a specified correlated probability distribution. In traditional game theory, a trusted third party mediator carries out this random selection, and reveals to each player its recommended action.In such games that have a correlated equilibrium, each player follows the mediator’s recommendation because deviating from it cannot increase a player’s expected payoff. Dodis, Halevi, and Rabin [1] described a two-party protocol that eliminates, through cryptographic means, the third party mediator. That protocol was designed and works well for a uniform distribution, but can be quite inefficient if applied to non-uniform distributions. Teague [2] has subsequently built on this work and extended it to the case where the probabilistic strategy no longer assigns equal probabilities to all the pairs of moves. Our present paper improves on the work of Teague by providing, for the same problem, a protocol whose worst-case complexity is exponentially better. The protocol also uses tools that are of independent interest.
Most rational secret sharing protocols aim to achieve a more appealing equilibrium or resist adversaries. However, all previous protocols achieve resilience against irrational adversaries at the cost of inducing a weak guarantee of Nash equilibrium surviving iterated deletion, which has been proved weaker than strict Nash equilibrium. Moreover, they achieve equilibrium in a computational way based on the computational limitations of adversaries. In this paper, we design two unconditionally secure rational (t, n) secret sharing protocols. Contrary to prior works, our protocols induce an enhanced notion of strict equilibrium with respect to adversary structure A, and resist the computationally unbounded and adaptive adversary without using cryptographic primitives. Our protocols achieve stronger stability, since rational players have an incentive not to deviate no matter how the adversary behaves, and they are immune to the backward induction. Our protocols are secure against the adversary corrupting less than [n/3] players and the adversary corrupting less than [n/2]-1 players respectively. Both of them achieve utility independence.