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Rationalizability, Iterated Dominance, and the Theorems of Radon and Carathéodory

Roy Long University of Chicago Economics
Originally written February 2022. This version January 2024
(February 2022


Stanford Economic Review 2024 )
Abstract

The game theoretic concepts of rationalizability and iterated dominance are closely related and provide characterizations of each other. Indeed, the equivalence between them implies that in a two player finite game, the remaining set of actions available to players after iterated elimination of strictly dominated strategies coincides with the rationalizable actions. I prove a dimensionality result following from these ideas. I show that for two player games, the number of actions available to the opposing player provides a (tight) upper bound on how a player’s pure strategies may be strictly dominated by mixed strategies. I provide two different frameworks and interpretations of dominance to prove this result, and in doing so relate it to Radon’s Theorem and Carathéodory’s Theorem from convex geometry. These approaches may be seen as following from point—line duality. A new proof of the classical equivalence between these solution concepts is also given.

1 Introduction

Strategic dominance is a standard concept in game theory. It encapsulates the intuition that in a strategic environment, one should never take some action aa if in all possible scenarios (formally, all profiles of the other players’ actions), another action aa^{\prime} does strictly better.

In this section, we review the concepts of dominance and rationalizability, and summarize the content of the paper.

We consider finite, two player strategic games. For i=1,2i=1,2, player ii’s (pure) strategies is the set of actions AiA_{i}.

Definition: A pure strategy for player ii, aiAiia_{i}\in A_{i}i is strictly dominated by another pure strategy aia_{i}^{\prime} if ui(ai,ai)<ui(ai,ai)u_{i}(a_{i},a_{-i})<u_{i}(a_{i}^{\prime},a_{-i}) for any ai.a_{-i}.

Dominance can be generalized to mixed strategies, where players randomize over actions. In this case, the expected payoff is compared.

Definition: A (pure) strategy aiAia_{i}\in A_{i} is strictly dominated by a mixed strategy sis_{i} over the set {aj}\{a_{j}\} if ui(ai,ai)<Ui(s,ai)=jpjui(aj,ai)u_{i}(a_{i},a_{-i})<U_{i}(s,a_{-i})=\sum_{j}p_{j}u_{i}(a_{j},a_{-i}) for all aia_{-i} where (pj)(p_{j}) is a probability distribution over {aj}\{a_{j}\} specified by s.s.

If the game is finite, the iterated elimination of strictly dominated strategies may be performed. The simple algorithm is to repeatedly remove strategies (for either player) which are strictly dominated by some mixed strategy from the game, until no such strategies are left. It is easy to show that the set of remaining strategies are those that were not strictly dominated in the original game, and any strictly dominated strategy is removed by this process.

More recently, the solution concept of rationalizability was developed. For two player games the definition is as follows:

Definition: An action aiAia_{i}\in A_{i} is not rationalizabile if for any belief q=(q1,,qm)q=(q_{1},\ldots,q_{m}) player ii has about player (i)(-i)’s strategy si,s_{-i}, there exists some other action aiAa_{i}^{\prime}\in A (which may depend on qq) such that Ui(ai,si)<Ui(ai,si)U_{i}(a_{i},s_{-i})<U_{i}(a_{i}^{\prime},s_{-i})

One can also give a recursive definition of kk-level rationalizability (kk\in\mathbb{N}), and repeatedly remove strategies that are not rationalizable until all remaining actions are rationalizable.

It is easy to show that any strictly dominated strategy is not rationalizable, as one intuitively expects. It turns out that the converse is true as well, which was first shown in 1984 independently by both Bernheim [1] and Pearce [2].

Theorem 1.1.

(Pearce, Bernheim). Given a finite, two player strategic game G,G, the set of (pure) strategies that remain after iterated elimination of strictly dominated strategies are precisely the strategies that are rationalizable in G.G.

Proof.

See Appendix. ∎

Bernheim’s proof represents strategies as payoff vectors in d\mathbb{R}^{d} and uses the separating hyperplane theorem. Pearce’s proof uses the minimax theorem for zero sum games. See Fudenberg [3] or Yildiz [4] for a presentation of the former and Obara [5] for the latter.

The central result of this paper is Theorem 2.1.\textbf{Theorem 2.1}. We prove a tight bound on the minimum number of strategies needed to form a mixed strategy that strictly dominates another strategy. There is a rich connection to convex geometry in our analysis, and there are several representations of dominance and rationalizability that lead to classical results in this area of mathematics.

The methods in section 2 also yield a new proof of Theorem 1.1, mirroring the separating hyperplane proof of the equivalence. We defer our proof to the appendix.

In section 2, we provide a proof of Theorem 2.1 using Radon’s Theorem motivated by a natural view of the equivalence between rationalizability and dominance. We also show that the bound still holds when a player can have infinitely many actions.

In section 3, we represent dominance using vectors in d.\mathbb{R}^{d}. We give another proof of Theorem 2.1,\textbf{Theorem 2.1}, and discuss the mathematical connections between the two proofs.

We may also the two approaches as resulting from a kind of point—line duality. In section 3, we view strategies as payoff vectors (or points), while in section 2, strategies are represented by hyperplanes.

2 Connections to Convex Geometry

We study the following question: Given a two player finite strategic game GG with action sets A,B,A,B, suppose some player’s (without loss of generality player 1) pure strategy aiAa_{i}\in A is strictly dominated by a mixed strategy on a set of actions {aj}=AA.\{a_{j}\}=A^{\prime}\subseteq A. Can we bound the size of the support of this mixed strategy, |A||A^{\prime}|?

An obvious bound is |A||A|,|A^{\prime}|\leq|A|, and furthermore |A||A|1,|A^{\prime}|\leq|A|-1, as if aiAa_{i}\in A^{\prime} then aia_{i} is still dominated by some mix on A{ai}.A^{\prime}\setminus\{a_{i}\}.

Interestingly, it turns out that we actually can bound |A||A^{\prime}| by the number of actions available to player 2, i.e. |B|.|B|. This is not at all obvious.

More precisely, we have the following result:

Theorem 2.1.

Let GG be a finite two player game, where player 11’s set of actions is AA and player 22’s set of actions is B.B. If aiAa_{i}\in A is strictly dominated by a mix of strategies over {aj}A,\{a_{j}\}\subseteq A, then in fact aia_{i} is strictly dominated by a mixed strategy {aj}\{a_{j}^{\prime}\} consisting of at most min(|A|,|B|)\min(|A|,|B|) actions. An analogous bound holds for player 2.2.

Remark 2.2.

The bound for player 1 can be improved to min(|A|1,|B|)\min(|A|-1,|B|) based on the simple observation above. In fact, we will show that this bound is tight.

Now the result for player 1 is trivial if |A||B|,|A|\leq|B|, but it is not immediately clear why such a result should be true otherwise. Why does the number of actions the opponent has affect (and moreover provides a bound on) how a player’s pure strategies are dominated by mixes of their own strategies?

For example, if player 22 has |B|=4|B|=4 available actions and player 11 has |A|=10|A|=10 available actions, then this tell us that if some action aiAa_{i}\in A of player 11 is strictly dominated, it’s in fact dominated by some set of just 44 of player 11’s available actions.

When |B|=m=1|B|=m=1, it is trivial, as player 22 only has one action that she must play. When m=2,m=2, this tells us that if a pure strategy is strictly dominated, either it is dominated by another pure strategy or by a mix of two strategies.

Henceforth, we assume von Neumann Morgenstern preferences, i.e. preferences over strategies are compared based on their expected payoffs.

To motivate this theorem, we start by first examining the case for m=2.m=2. Consider the simple 3×23\times 2 game, with the payoffs as listed, where rows are player 1s1^{\prime}s actions and columns are player 2s2^{\prime}s actions.

1 \\backslash 2 L R
U (6,1) (0,3)
M (2,1) (5,0)
D (3,2) (3,1)

Figure 1: payoff matrix

Then if player 11 has belief (q,1q)(q,1-q) over {L,R}\{L,R\} about player 22’s strategy, then player 11’s expected payoffs by playing U,M,DU,M,D are, respectively:

EU=6qE_{U}=6q
EM=2q+5(1q)=53qE_{M}=2q+5(1-q)=5-3q
ED=3E_{D}=3

By plotting these as graphs on the domain q[0,1],q\in[0,1], we can see that for every q[0,1],q\in[0,1], the ED(q)E_{D}(q) is less than at least one of EU(q)E_{U}(q) and EM(q).E_{M}(q). rationalizability then tells us that DD is strictly dominated by some mixed strategy of UU and M.M.

Let EU=f1,EM=f2,ED=f3E_{U}=f_{1},E_{M}=f_{2},E_{D}=f_{3} for ease of notation. Since these functions are all linear and therefore convex, their maximum is also convex. So by taking the upper convex hull of the lines, ie. fMAX=max1i3{fi},f_{MAX}=\max_{1\leq i\leq 3}\{f_{i}\}, the graph of f3f_{3} lies entirely below the upper convex hull fMAXf_{MAX} and is strictly dominated by it.
Now let’s look at a different game, where player 22 again has two actions B={b1,b2}B=\{b_{1},b_{2}\}, and suppose player 11 has five actions {a1,,a5}\{a_{1},\ldots,a_{5}\} corresponding to the following expected payoffs for player 1, if she has belief (q,1q)(q,1-q) over {b1,b2}\{b_{1},b_{2}\}:

E1(q)=1.2q+0.4E_{1}(q)=1.2q+0.4
E2(q)=1.3q+1.3E_{2}(q)=-1.3q+1.3
E3(q)=0.5q+0.8E_{3}(q)=0.5q+0.8
E4(q)=0.8q+1E_{4}(q)=-0.8q+1
E5(q)=0.8.E_{5}(q)=0.8.

The graph below shows the expected payoffs of these strategies as a function of the belief q[0,1],q\in[0,1], where the black curve is E2,E_{2}, the green curve is E4,E_{4}, the horizontal purple curve is E5,E_{5}, the positive sloping purple curve is E1,E_{1}, and the blue curve is E3.E_{3}.

Refer to caption
Figure 2: expected payoffs given beliefs

We can see that a4a_{4} and a5a_{5} are strictly dominated by a1,a2,a3a_{1},a_{2},a_{3} as
E4(q),E5(q)<max{E1(q),E2(q),E3(q)}E_{4}(q),E_{5}(q)<\max\{E_{1}(q),E_{2}(q),E_{3}(q)\} for all 0q1.0\leq q\leq 1. For example, a4a_{4} is strictly dominated by a mix over a1,a2,a3a_{1},a_{2},a_{3} with mixed strategy q=(0.2,0.3,0.5),q=(0.2,0.3,0.5), which results in an expected payoff of 0.2(1.2q+0.4)+0.3(1.3q+1.3)+0.5(0.5q+0.8)=0.1x+0.87>0.8=E5(q)0.2(1.2q+0.4)+0.3(-1.3q+1.3)+0.5(0.5q+0.8)=0.1x+0.87>0.8=E_{5}(q) for all q[0.1]q\in[0.1], and a5a_{5} is strictly dominated by a mix over a1,a2,a3a_{1},a_{2},a_{3} with mixed strategy q=(0.2,0.7,0.1)q=(0.2,0.7,0.1) which results in an expected payoff of 0.2(1.2q+0.4)+0.7(1.3q+1.3)+0.1(0.5q+0.8)=1.070.62q>0.8q+10.2(1.2q+0.4)+0.7(-1.3q+1.3)+0.1(0.5q+0.8)=1.07-0.62q>-0.8q+1 for all q[0,1].q\in[0,1].

Notice that in both cases, we only need to choose two out of the three to guarantee a mixed strategy that strictly dominates them. For example, if we consider a mix over with a1,a2a_{1},a_{2} with probability distribution (0.3,0.7),(0.3,0.7), then the expected payoff is 0.3(1.2q+0.4)+0.7(1.3q+1.3)=1.030.55q>0.8q+1=E4(q)0.3(1.2q+0.4)+0.7(-1.3q+1.3)=1.03-0.55q>-0.8q+1=E_{4}(q) for all q[0,1].q\in[0,1]. Similarly, a5a_{5} can be dominated by mixes over just {a1,a2},\{a_{1},a_{2}\}, as well as a mix of {a2,a3}.\{a_{2},a_{3}\}. Graphically, we see that for a strictly dominated action, we can choose just two of the graphs of other functions such that the maximum of them lies strictly above the dominated strategies’ graph.

Unfortunately, there are some edge cases where strict dominance never happens and the graph of every fif_{i} is part of the upper convex hull maxfi\max f_{i} at some point.

Thus, the equivalence of rationalizability and elimination of dominated strategies gives us the following result:

Proposition 2.3.

(Theorem 2.1 for d=2d=2) Let f1,f2,,fk:[0,1]f_{1},f_{2},\ldots,f_{k}:[0,1]\to\mathbb{R} be linear, i.e. fi(x)=aix+bif_{i}(x)=a_{i}x+b_{i} for all i,i, and q[0,1].q\in[0,1]. Suppose g:[0,1]g:[0,1]\to\mathbb{R} is also linear and satisfies: for all x[0,1],x\in[0,1], the maxi(fi(x))>g(x).\max_{i}(f_{i}(x))>g(x). Then there exists weights 0r1,,rk10\leq r_{1},\ldots,r_{k}\leq 1 such that r1++rk=1r_{1}+\cdots+r_{k}=1 and rifi(x)>g(x)\sum r_{i}f_{i}(x)>g(x) for all x[0,1].x\in[0,1]. In fact, it is possible to choose the rir_{i} such that all but at most two of them are 0.0.

In other words, if the graph of an action’s expected payoff lies strictly below the upper convex hull (i.e. it’s strictly dominated), it is in fact strictly dominated by a mix over a set of at most two actions.

Proof.

The first part of the statement follows from the equivalence of rationalizability and iterated dominance, so we show the second part. First, note that we may assume that g(x)=0g(x)=0 for x[0,1],x\in[0,1], as we consider fi(x)=fi(x)g(x)f_{i}^{\prime}(x)=f_{i}(x)-g(x) for all i,i, which are still linear functions and the condition becomes maxifi>0\max_{i}f_{i}^{\prime}>0 with g=0.g^{\prime}=0.

First, remove all functions fif_{i} where fi(x)g(x)f_{i}(x)\leq g(x) for all x[0,1]x\in[0,1], as they will never be part of the upper convex hull. Now, for the graphs of the remaining functions, either they intersect the graph of gg or they don’t. If they don’t, then they lie entirely above g,g, i.e. fk(x)>g(x)f_{k}(x)>g(x) for all x[0,1]x\in[0,1], and we can just let rk=1r_{k}=1 and all other ri=0.r_{i}=0.

Otherwise, they have a unique intersection point. For simplicity, as we noted above, we may assume gg is zero. Then, we can look at where each fkf_{k} intersects [0,1][0,1] on the xx-axis. Let LL be the leftmost xx-intercept in [0,1][0,1] such that the corresponding ff has positive slope, and RR be the rightmost xx-intercept in [0,1][0,1] such that the corresponding ff has negative slope. Then, it’s easy to see that L<RL<R because otherwise maxf\max f is not greater than zero at points between LL and RR, so it reduces to only having two functions f1,f2,f_{1},f_{2}, where f1=a1(x+b1)f_{1}=a_{1}(x+b_{1}) and f2=a2(x+b2)f_{2}=a_{2}(x+b_{2}) where a1>0,a2<0a_{1}>0,a_{2}<0 and 0b1<b21.0\leq b_{1}<b_{2}\leq 1.

Then, we have r1f1+r2f2=r1a1(x+b1)+r2a2(x+b2)r_{1}f_{1}+r_{2}f_{2}=r_{1}a_{1}(x+b_{1})+r_{2}a_{2}(x+b_{2}), and by setting r1a1=r2a2r_{1}a_{1}=-r_{2}a_{2}, we just get a constant function which is greater than zero (r1f1+r2f2r_{1}f_{1}+r_{2}f_{2} goes through the intersection point of f1,f2f_{1},f_{2} which lies above the xx-axis.) ∎

Notice that in the last step of the previous proof, we didn’t need to explicitly construct the function r1f1+r2f2.r_{1}f_{1}+r_{2}f_{2}. In fact, the equivalence of rationalizability and iterated strict dominance tells us if the graph of g(x)g(x) is strictly below the upper convex hull formed by some set of fi,f_{i}, then gg is strictly dominated by those fi,f_{i}, so in particular, we’re guaranteed that such rir_{i} exists for the corresponding fif_{i} that make the weighted sum greater than g.g. The main result of the previous proof was that we only needed to choose two of the fif_{i} and it would be sufficient that the maxfi\max f_{i} over those two functions would be greater than zero at all points.

Now, we generalize the preceding intuition to higher dimensions, i.e. when player 22 has more than two actions. In essence, what we did in the previous proof was this: after subtracting gg from all the fi,f_{i}, we were left with graphs of linear functions whose overall maximum is strictly greater than 0,0, i.e. their upper convex hull lies strictly the xx-axis. Then, we looked at all linear functions that intersected [0,1].[0,1]. We can assume this because if the linear function had an xx-intercept outside of [0,1],[0,1], then its restriction to [0,1][0,1] will clearly be positive. Thus, we only needed to consider the cases of positive and negative slope that intersected [0,1].[0,1]. Then, if a positive sloped line intersected [0,1][0,1] at x0,x_{0}, the maxifi(x)>0\max_{i}f_{i}(x)>0 for all x>x0,x>x_{0}, and if a negative sloped line intersected [0,1][0,1] at x0,x_{0}, we know maxifi(x)>0\max_{i}f_{i}(x)>0 for all x0<0.x_{0}<0.

Thus, the problem is reduced to: given a set of 11-dimensional rays or half lines that cover [0,1],[0,1], we want to show that there exists a subset of at most two of them that also covers [0,1].[0,1].

011
Figure 3: Covering of [0,1][0,1] by half-lines

In general, a belief player 11 can have about player 22 where player 22 can choose from mm possible actions b1,,bmb_{1},\ldots,b_{m} is an mm-tuple (q1,,qm)[0,1]m(q_{1},\ldots,q_{m})\in[0,1]^{m} where i=1mqi=1.\sum_{i=1}^{m}q_{i}=1.
Letting qm=1q1qm1,q_{m}=1-q_{1}-\cdots-q_{m-1}, the set of possible beliefs is represented by the m1m-1-dimensional simplex Sm1S^{m-1} (including its interior) of points x=(x1,,xm1)[0,1]m1x=(x_{1},\ldots,x_{m-1})\in[0,1]^{m-1} where i=1m1xi1.\sum_{i=1}^{m-1}x_{i}\leq 1. For example, when m=2,m=2, this is just the line segment [0,1].[0,1]. When m=3,m=3, this is the closed triangle region bounded by the xx-axis, the yy-axis, and the line x+y=1.x+y=1. When m=4,m=4, it is a tetrahedron with vertices at (0,0,0),(1,0,0),(0,1,0),(0,0,1),(0,0,0),(1,0,0),(0,1,0),(0,0,1), and so forth.

Let us examine this for the d=3d=3 case. We can plot the mixed strategies (beliefs) of player 22 in q1q_{1}-q2q_{2} space, which is S2,S^{2}, the right isosceles triangle in 2\mathbb{R}^{2} bounded by q1,q20,q1+q21.q_{1},q_{2}\geq 0,q_{1}+q_{2}\leq 1. Then, the expected payoff for player 11 by choosing action ai,a_{i}, with belief q=(q1,q2,q3=1q1q2),q=(q_{1},q_{2},q_{3}=1-q_{1}-q_{2}), is a function fi:S1[0,1]2f_{i}:S^{1}\subset[0,1]^{2}\to\mathbb{R} defined by f(q1,q2)=ai,1q1+ai,2q2+ai,3(1q1q2).f(q_{1},q_{2})=a_{i,1}q_{1}+a_{i,2}q_{2}+a_{i,3}(1-q_{1}-q_{2}). Thus, the graph of fif_{i} is the restriction of a plane to S1.S^{1}.

Finally, we have the graph of g,g, which is also a plane. Again, we can consider f=fg,f^{\prime}=f-g, and the resulting functions are still planes, so we have max{f(x)}>0\max\{f^{\prime}(x)\}>0 for all xS1.x\in S^{1}. Now, each of the planes fif_{i}^{\prime} will intersect the plane 2×{0}\mathbb{R}^{2}\times\{0\} at some line ll in the q1q_{1}-q2q_{2} plane. First, if any fif_{i}^{\prime} is parallel to 2\mathbb{R}^{2}, then clearly it is constant and strictly greater than zero, and so that single function fi>gf_{i}>g for all xS2x\in S^{2}. This means that the pure strategy aia_{i} strictly dominates gg so we may ignore this case. The cross sections will be lines that intersect the closed simplex S2S^{2} (i.e. the closed triangle with vertices (0,0),(0,1),(1,0)(0,0),(0,1),(1,0)) and we will have open half planes h1,h2,,hkh_{1},h_{2},\ldots,h_{k} that cover S2.S^{2}.

So in the general case, each action aia_{i} has an expected utility fi:Sm1f_{i}:S^{m-1}\to\mathbb{R} whose graph is a m1m-1 dimensional hyperplane in n,\mathbb{R}^{n}, restricted to the domain Sm1.S^{m-1}. After taking a transformation fi=fig,f_{i}^{\prime}=f_{i}-g, the condition turns into max{fi}>0.\max\{f_{i}^{\prime}\}>0. Then, each hyperplane fif_{i}^{\prime} intersects m1×0\mathbb{R}^{m-1}\times{0}, which cuts m1\mathbb{R}^{m-1} into two half spaces, where one of the (open) half spaces represents the set of points where fi>0f_{i}^{\prime}>0, and the other (closed) half space represents the set of points where fi0.f_{i}^{\prime}\leq 0. Of course, we only care about the intersection of the half spaces with the domain Sm1m1.S^{m-1}\subset\mathbb{R}^{m-1}.

(0, 1)(0, 0)(1, 0)
Figure 4: A partial covering of S2S^{2} with half planes

We are thus left with the following problem:

Proposition 2.4.

(Theorem 2.1, geometric form)   Let QdQ\subset\mathbb{R}^{d} be a dd-dimensional convex polytope (including its boundary and interior). Suppose a set of open half spaces h1,h2,,hnh_{1},h_{2},\ldots,h_{n} covers Q.Q. Then, there exists a subset of at most d+1d+1 of these hih_{i} that also cover Q.Q.

The key observation is that we want to remove redundant half spaces. If a half space covers a region that is also covered by another set of half planes, then we can remove the first half plane and the covered region will be the same. A half space being covered by another half space corresponds to dominance by a pure strategy. Being covered by a set of half spaces corresponds to being dominated by a mixed strategy. We define a minimal configuration to be one where no half plane can be removed and the remaining half planes still cover the polytope, i.e. each half plane contains a point that is uniquely covered by it.

First, we gain some intuition for this result by showing it for d=3,d=3, i.e. a covering of S2S^{2} with half planes.

Proposition 2.5.

(Theorem 2.1 for d=3d=3)   Let Q2Q\subset\mathbb{R}^{2} be a closed convex polygon including its interior. Suppose nn open half planes covers Q.Q. Then, there exists a subset of at most 33 half planes that cover Q.Q.

Proof.

Suppose for contradiction that there exists a covering of the polygon QQ with half planes {hi}\{h_{i}\} such that any subset of {hi}\{h_{i}\} that also coves QQ contains at least four planes. Consider any minimal configuration {hj}{hi}\{h_{j}^{\prime}\}\subset\{h_{i}\} that covers Q.Q. By assumption, |{hj}|4.|\{h_{j}\}|\geq 4.

Since {hj}\{h_{j}^{\prime}\} is minimal, we cannot remove any h{hj}h\in\{h_{j}^{\prime}\} to get a smaller subset of half planes that also covers Q.Q. Thus, for every hj,h_{j}^{\prime}, there exists some point pjQp_{j}\in Q that is only covered by hj.h_{j}^{\prime}.

Thus, we have four points p1,p2,p3,p4Qp_{1},p_{2},p_{3},p_{4}\in Q such that pjp_{j} is uniquely covered by hjh_{j}^{\prime} for all 1j4.1\leq j\leq 4.

There are a few possible configurations. We check the cases based on the convex hull HH of p1,p2,p3,p4.p_{1},p_{2},p_{3},p_{4}.

Suppose HH is a line segment, i.e. p1p2p3p4p_{1}p_{2}p_{3}p_{4} are collinear, in that order. Then, we’ve just reduced it to the d=2d=2 one dimensional case, as each plane bisects the line at some intersection point and covers everything to one side. So we see that there must be some plane that covers at least two points as there are more than two planes.

Now suppose HH is a triangle, say H=p2p3p4.H=\triangle p_{2}p_{3}p_{4}. Then p1p_{1} lies in p2p3p4.\triangle p_{2}p_{3}p_{4}. If p1p_{1} lies strictly in the interior of p2p3p4,\triangle p_{2}p_{3}p_{4}, then clearly any half planes that cover p1p_{1} also intersect p2p3p4,\triangle p_{2}p_{3}p_{4}, and we see that one of those vertices are necessarily covered as well. (If the plane doesn’t cover any of the three vertices, then the entire triangle lies on the other side of the plane and is also not covered so p1p_{1} is not covered, which can’t happen.)

If p2p_{2} lies on the boundary (one of the sides) of p2p3p4,\triangle p_{2}p_{3}p_{4}, then we need to be a bit careful but the same result holds as in the previous subcase.

Finally, suppose HH contains all four points p1,p2,p3,p4,p_{1},p_{2},p_{3},p_{4}, so the points form a non-degenerate convex quadrilateral, without loss of generality p1p2p3p4p_{1}p_{2}p_{3}p_{4} in clockwise order. Then, note that p1p3p_{1}p_{3} intersects p2p4p_{2}p_{4} at some point xx inside H,H, and again we see that any point that covers xx also covers at least two of the vertices of H,H, so this case is covered.

The result follows, i.e. any covering of S2S^{2} with nn half planes contains a subcover using at most three half planes. ∎

For the general case in d,\mathbb{R}^{d}, we utilize Radon’s Theorem, which states:

Theorem 2.6.

(Radon)   Let PP be a set of nd+2n\geq d+2 distinct points in d.\mathbb{R}^{d}. Then, PP can be partitioned into two nonempty subsets V1V_{1} and V2V_{2} such that the convex hulls of V1V_{1} and V2V_{2} intersect.

Proof.

See appendix. ∎

For the general case in d,\mathbb{R}^{d}, let QdQ\subset\mathbb{R}^{d} be a convex polytope (i.e. including the boundary and interior). Suppose there are nd+2n\geq d+2 half spaces h1hnh_{1}\ldots h_{n} which cover Q,Q, such that each half space contains a point piQp_{i}\in Q that is only covered by hi.h_{i}.

By Radon’s Theorem (as nd+2n\geq d+2), we can partition P={p1,,pn}P=\{p_{1},\ldots,p_{n}\} into two sets P1P_{1} and P2P_{2} such that their convex hulls H(P1),H(P2)H(P_{1}),H(P_{2}) intersect. Consider a point xH1(P1)H(P2)x\subset H_{1}(P_{1})\cap H(P_{2}) in this intersection, which lies in the original polytope QQ by convexity: as P1,P2PQ,P_{1},P_{2}\subset P\subset Q, we have H(P1),H(P2)H(P)H(Q)=Q.H(P_{1}),H(P_{2})\subset H(P)\subset H(Q)=Q.

However, xx cannot be covered by any hih_{i} with corresponding pip_{i} in P1,P_{1}, as xx is in H2,H_{2}, and so any such hih_{i} would have to intersect H2H_{2} and contain some other point in P2.P_{2}. Analogously xx cannot be covered by any hih_{i} with pip_{i} in P2.P_{2}. So xQx\in Q is not covered by hi,\bigcup h_{i}, which is a contradiction. This uses the fact that for an open half space, if a set of points all lie on the other side, then their convex hull also lies entirely on the other side.

So letting Q=Sn1,Q=S^{n-1}, the n1n-1-dimensional simplex, we have proven Theorem 2.1. \blacksquare

An immediate result of Theorem 2.1 is that it gives us a characterization of which actions can be removed by iterated strict dominance, i.e. which ones are rationalizable. Indeed, as we’ve shown, if fif_{i} lies under the upper convex hull of f1,,fm,f_{1},\ldots,f_{m}, then fif_{i} is strictly dominated. In practice, we should be able to solve this with linear programming. If fif_{i} is part of the upper convex hull at any point qSm1,q\in S^{m-1}, then fi(q)fk(q)f_{i}(q)\geq f_{k}(q) for all 1km,1\leq k\leq m, so no mixed strategy beats fif_{i} with belief q.q. Finally, we point out the case of weak dominance. When m=2,m=2, it’s easy to see that either the graph of the function lies strictly below the upper convex hull, coincides with the upper convex hull on some set that contains an interval, or intersects the upper convex hull exactly at a single point. The last case is when the action is weakly dominated. For m=3,m=3, we see that weak dominance can result in a weak set (where the graph of the function coincides with the upper convex hull) of a point or a line, and so forth.

We also note that Theorem 2.1 still holds even if one player has infinitely many actions.

Corollary 2.7.

Let GG be a two player game where player 22 has a finite number of actions B={b1,,bm}B=\{b_{1},\ldots,b_{m}\}, and player 11 has infinitely many actions A={ai}iIA=\{a_{i}\}_{i\in I} for some index set I.I. Then, if some action aia_{i} is strictly dominated by a mixed strategy over a set of actions {aj}=AA,\{a_{j}\}=A^{\prime}\subset A, in fact aia_{i} is strictly dominated by a mixed strategy over a finite set of at most mm actions.

Proof.

We simply note that we are covering Q=Sn1Q=S^{n-1} with open half spaces haj,h_{a_{j}}, and since QQ is compact (closed and bounded), ajAhaj\bigcup_{a_{j}\in A^{\prime}}h_{a_{j}} forms an open cover of Q,Q, so there exists a finite subcollection a1,a2,,akAa_{1}^{\prime},a_{2}^{\prime},\ldots,a_{k}^{\prime}\in A^{\prime} such that ajAhaj\bigcup_{a_{j}^{\prime}\in A^{\prime}}h_{a_{j}^{\prime}} also covers Q.Q. Then by the previous result, we again know that there exists a subset of at most mm of these hajh_{a_{j}^{\prime}} that covers Q,Q, and we are done. ∎


3 A Linear Algebra Perspective

Now, let us turn to a completely different representation of dominance. This approach yields a more natural, geometric, interpretation of Theorem 2.1, which can be seen fundamentally as a dimensionality result.

Again suppose player 22 has mm actions b1,,bm.b_{1},\ldots,b_{m}. We view the payoffs for player 11 as a matrix A=(aij)A=(a_{ij}) (linear transformation), and each action aia_{i} as a row vector vi=(ai,1,,ai,m).v_{i}=(a_{i,1},\ldots,a_{i,m}).

Assuming von-Neumann Morgenstern Preferences, by taking a positive affine transformation, we may first transform the matrix to A=A+cJA^{\prime}=A+cJ, where JJ is the n×mn\times m matrix with all 11’s and cc is a positive constant, so that all coordinates are strictly positive.

We view each payoff action as a vector in m.\mathbb{R}^{m}. Then, if we play a mixed strategy over some actions {aj}\{a_{j}\} with probabilities {pj},\{p_{j}\}, then in vector form this represents pjvj,\sum p_{j}v_{j}, where pj=1.\sum p_{j}=1.

In other words, if we take the convex hull of all the vj,v_{j}, along with the origin, the possible mixed strategies over these vectors is represented by the outer boundary BB of the convex hull H.H.

Similarly, we see that the convex polytope formed by taking the convex hull of the vectors is exactly the region

{i=1mλivi0λ1,,λm1 and i=1mλi1},\left\{\sum_{i=1}^{m}\lambda_{i}v_{i}\mid 0\leq\lambda_{1},\ldots,\lambda_{m}\leq 1\text{ and }\sum_{i=1}^{m}\lambda_{i}\leq 1\right\},

i.e. the region contained by the affine hull of the vectors v1,,vm.v_{1},\ldots,v_{m}.

The natural connection here is that the characterization of probability distributions over mm elements using the simplex and the linear algebra formulation of convex hull of points using linear combinations are very similar, which leads to a re-interpretation of the probabilities/weights as coefficients of vectors.

With this formulation in mind, we now prove several preliminary results about strict dominance.

Proposition 3.1.

A pure strategy aia_{i} is strictly dominated by another pure strategy aja_{j} if and only if the kkth component of viv_{i} is strictly less than the kkth component of viv_{i} for all 1km.1\leq k\leq m.

Proof.

First, suppose that for some strategies ai,aj,a_{i},a_{j}, that ai,k<aj,ka_{i,k}<a_{j,k} for all components 1km.1\leq k\leq m. Clearly for any belief q=(q1,,qm)[0,1]m,qk=1q=(q_{1},\ldots,q_{m})\in[0,1]^{m},\sum q_{k}=1 we have k=1mqk(ai,kaj,k)<0\sum_{k=1}^{m}q_{k}(a_{i,k}-a_{j,k})<0 because each term is less than or equal to zero and not all of them are zero, so k=1mqkai,k<k=1mqkaj,k,\sum_{k=1}^{m}q_{k}a_{i,k}<\sum_{k=1}^{m}q_{k}a_{j,k}, i.e. E(ai)<E(aj),E(a_{i})<E(a_{j}), and aia_{i} is strictly dominated by aj.a_{j}.

Now, suppose vi=(ai,1,,ai,m)v_{i}=(a_{i,1},\ldots,a_{i,m}) is strictly dominated by vj=(aj,1,,aj,m).v_{j}=(a_{j,1},\ldots,a_{j,m}). Then, for all possible beliefs q=(q1,,qm),q=(q_{1},\ldots,q_{m}), we must have k=1mqkai,k<k=1mqkaj,k,\sum_{k=1}^{m}q_{k}a_{i,k}<\sum_{k=1}^{m}q_{k}a_{j,k}, so
k=1mqk(ai,kaj,k)<0.\sum_{k=1}^{m}q_{k}(a_{i,k}-a_{j,k})<0. By letting q=(1,0,,0),(0,1,0,,0),,(0,,0,1),q=(1,0,\ldots,0),(0,1,0,\ldots,0),\ldots,(0,\ldots,0,1), we see that ai,k<aj,ka_{i,k}<a_{j,k} for all 1km.1\leq k\leq m.


It turns out that more generally, if we consider strict dominance by a mixed strategy, we can treat the mixed strategy as a pure strategy vector and compare them as if we were comparing two pure strategies’ vectors. This leads us to the following proposition.

Proposition 3.2.

Consider a mixed strategy over actions {aj}\{a_{j}\} with probability distribution {λj},\{\lambda_{j}\}, which we represent as u=λjvj.u=\sum\lambda_{j}v_{j}. Then, a pure strategy aia_{i} is strictly dominated by the mixed strategy over {aj}\{a_{j}\} if and only if the kkth component of viv_{i} is strictly less than the kkth component of u,u, i.e. viv_{i} is strictly dominated by the pure strategy vector representation of {aj}\{a_{j}\} with lottery {λj}.\{\lambda_{j}\}.

Proof.

Let q[0,1]mq\in[0,1]^{m} be any belief player 11 can have about player 22’s possible strategy. Then, the expected payoff with the pure strategy aia_{i} is simply the dot product E(ai)=vi,q,E(a_{i})=\langle v_{i},q\rangle, and the expected payoff by playing the mixed strategy is

E({aj})=λjvj,q=λjvj,q=λjvj,q=u,q,E(\{a_{j}\})=\sum\lambda_{j}\langle v_{j},q\rangle=\sum\langle\lambda_{j}v_{j},q\rangle=\left\langle\sum\lambda_{j}v_{j},q\right\rangle=\langle u,q\rangle,

as with probability λj,\lambda_{j}, player 11 plays action aj,a_{j}, in which case the expected payoff is vj,q.\langle v_{j},q\rangle. Thus, we see that E(ai)<E({aj})E(a_{i})<E(\{a_{j}\}) if and only if vi,q<u,q\langle v_{i},q\rangle<\langle u,q\rangle for all possible beliefs q,q, which from the previous claim is equivalent to the components of viv_{i} being strictly less than the components of u.u.


Now, we can start classifying which types of pure strategies are dominated by a mix over other strategies. Let’s look at a set of pure strategies {aj}\{a_{j}\} with corresponding vectors {vj}.\{v_{j}\}. For example, consider the four vectors in 2\mathbb{R}^{2} as below. Then, a good geometric intuition for whether a vector vv is strictly dominated by some mix over {vj}\{v_{j}\} is if the vector is contained in the convex hull formed.

For example, consider the following payoffs for player 11 in a game where player 22 has two actions and player 11 has three actions. A = (155122)\begin{pmatrix}1&5\\ 5&1\\ 2&2\\ \end{pmatrix}

We see that a3=(2,2)a_{3}=(2,2) is strictly dominated by a mix of over a1,a2a_{1},a_{2} with equal probability for both actions, i.e. the mixed vector is v=12(1,5)+12(5,1)=(3,3)v^{\prime}=\frac{1}{2}(1,5)+\frac{1}{2}(5,1)=(3,3) which strictly dominates (2,2).(2,2).

If we graph them, we see that (2,2)(2,2) lies between (inside) the vectors (1,5)(1,5) and (5,1),(5,1), i.e. the point (2,2)(2,2) lies inside the convex hull or triangle with vertices (0,0),(1,5),(5,1).(0,0),(1,5),(5,1). So a good intuitive guess is that points that lie within the convex hull formed by the vectors (1,5),(5,1)(1,5),(5,1) will be dominated by some mix of the two.

xxyymixed strategiesdominating (2, 2)(1, 5)(5, 1)(2, 2)
Figure 5: vector representation of dominance

And indeed, this easily follows from the previous claims.

Proposition 3.3.

If a strategy vector viv_{i} lies inside the convex hull (affine hull) of the vectors H(vj)H\left(\bigcup v_{j}\right) (but not on the outer faces/boundary), then the corresponding strategy aia_{i} is strictly dominated by a mix over {aj}.\{a_{j}\}.

Proof.

By the linear combination definition of convex hull, this means that we can write vi=λjvj,v_{i}=\sum\lambda_{j}v_{j}, where 0λj10\leq\lambda_{j}\leq 1. Remove all vectors that have trivial contribution so we may assume that all λj>0.\lambda_{j}>0. Note that λj=s<1\sum\lambda_{j}=s<1 as the the vector viv_{i} does not lie on the outer boundary of the convex hull, so we may extend viv_{i} to a vector u=λviu=\lambda v_{i} with λ>1\lambda>1 that intersects the outer boundary of the convex hull.

In particular, let u=λjvj=λjsvju=\sum\lambda_{j}^{\prime}v_{j}=\sum\frac{\lambda_{j}}{s}v_{j} which represents a mixed strategy of {aj}\{a_{j}\} with probability distribution {λj/s}\{\lambda_{j}/s\} as λjs=1.\sum\frac{\lambda_{j}}{s}=1. Note that λj<λjs\lambda_{j}<\frac{\lambda_{j}}{s} for all terms in the sum. Then have

E({aj})=u,q=λjsvj,q>λjvj,q=v,q=E(ai),E(\{a_{j}\})=\langle u,q\rangle=\left\langle\sum\frac{\lambda_{j}}{s}v_{j},q\right\rangle>\langle\sum\lambda_{j}v_{j},q\rangle=\langle v,q\rangle=E(a_{i}),

and aia_{i} is dominated by this mix over {aj}\{a_{j}\} as claimed. ∎

Proposition 3.4.

(Characterization of strategies that are strictly dominated by a mix over a given set)
Let {vj}\{v_{j}\} be a set of pure strategy vectors corresponding to the actions {aj}.\{a_{j}\}. Consider the boundary B,B, or the affine hull of the {vj}\{v_{j}\} defined by

B={λjvj:0λj1,λj=1},B=\left\{\sum\lambda_{j}v_{j}:0\leq\lambda_{j}\leq 1,\sum\lambda_{j}=1\right\},

which represents the set of all possible mixed strategies over {aj}.\{a_{j}\}. Then the set

XB=bB{v:v(k)<b(k) 1km}X_{B}=\bigcup_{b\in B}\{v:v_{(k)}<b_{(k)}\,\forall\,1\leq k\leq m\}

defines the set of pure strategies that are strictly dominated by some mix of {aj}.\{a_{j}\}. i.e. vv is strictly dominated by a mix over {vj}\{v_{j}\} if and only if vXB.v\in X_{B}.

Refer to caption
Figure 6: covering of green convex hull by blue triangles

Before using this characterization to provide another proof of Theorem 2.1, let us return to the case of points that lie strictly within the convex hull of some set of actions’ vectors. We will use this to find an elegant and natural interpretation of Theorem 2.1. For now, we work with the closed convex hull (i.e. including the boundary BB). The result is the same for open hull in the case of points that lie strictly within H.H.

Let’s look at four points v1,v2,v3,v4.v_{1},v_{2},v_{3},v_{4}. as shown below.

Then, the region of vectors that are strictly dominated by a mix of {v1,v2,v3,v4}\{v_{1},v_{2},v_{3},v_{4}\} is the region on the following page.

We can also look at the pairs of vectors, which bound triangular regions (above right).

These triangular regions represent the regions that are strictly dominated by two vectors. More specifically, the convex hulls are a subset of what points are strictly dominated by that set of vectors.

Now, the motivation for Theorem 2.1 becomes clear: the polygon region formed by the convex hull of the vectors {v1,v2,v3,v4}\{v_{1},v_{2},v_{3},v_{4}\} is equal to the union of the convex hulls of pairs of the vectors.

Refer to caption
Figure 7: convex hull is covered by the union of triangles over all pairs of vectors

Formally, if H(S)H(S) denotes the convex hull of a set of points S,S, then our preceding observation is:

H(O,v1,v2,v3,v4)\displaystyle H(O,v_{1},v_{2},v_{3},v_{4}) =H(O,v1,v2)H(O,v1,v3)H(O,v1,v4)H(O,v3,v4)\displaystyle=H(O,v_{1},v_{2})\cup H(O,v_{1},v_{3})\cup H(O,v_{1},v_{4})\cup\ldots\cup H(O,v_{3},v_{4})
=1i,j4H(O,vi,vj)\displaystyle=\bigcup_{1\leq i,j\leq 4}H(O,v_{i},v_{j})

Similarly, if we have have nn points in 3,\mathbb{R}^{3}, i.e. v1,,vnv_{1},\ldots,v_{n} in 3,\mathbb{R}^{3}, it’s easy to see that taking the union over all triples of points, i.e. H(O,v1,,vn)=i,j,kH(O,vi,vj,vk)H(O,v_{1},\ldots,v_{n})=\bigcup_{i,j,k}H(O,v_{i},v_{j},v_{k}) yields the entire convex hull. This is very intuitively clear. We are essentially considering all tetrahedrons with a fixed vertex OO, and by shifting the vertices around, we use these tetrahedra to cover the entire interior of the polyhedra.

More generally, a non-degenerate set of d+1d+1 points in d\mathbb{R}^{d} should determine a dd-dimensional figure, and by varying across different points in the set, we should be able to cover all dd-dimensional points in the convex hull, which is the following statement: Given nn nonzero points v1,,vnv_{1},\ldots,v_{n} in d,\mathbb{R}^{d}, representing vectors extending from O,O, then we have:
H(O,v1,,vn)=Sd([n]d)H(O,vk1,,vkd),H(O,v_{1},\ldots,v_{n})=\bigcup_{S_{d}\in\binom{[n]}{d}}H(O,v_{k_{1}},\ldots,v_{k_{d}}), where SdS_{d} varies over all subsets of
[n]={1,,n}[n]=\{1,\ldots,n\} with dd elements.

It is now easy to show that the generalization of our intuitive observation follows from Carathéodory’s Theorem.\textbf{Carathéodory's Theorem}.

Theorem 3.5.

(Carathéodory) If a point xdx\in\mathbb{R}^{d} lies in the convex hull of a set P,P, then xx can be written as the convex combination of at most d + 1 points in P.P. i.e. there is a subset PPP^{\prime}\subset P consisting of d+1d+1 or fewer points such that xH(P).x\in H(P^{\prime}).

Proof.

See appendix. ∎


For our proof, we need a variant known as Conical Carathéodory’s Theorem

Theorem 3.6.

(Carathéodory’s Theorem for Conical Hull)   Let nd+1n\geq d+1 and v1,,vnv_{1},\ldots,v_{n} be nn distinct nonzero vectors in d.\mathbb{R}^{d}. Consider the conical hull formed by this set. Then, if a nonzero point xx is in the conical hull, xx can be written as the conical combination of at most dd of the vi.v_{i}.

Proof.

See appendix. ∎


Corollary 3.7.

Furthermore, if xx also lies in the convex hull H(O,v1,,vn),H(O,v_{1},\ldots,v_{n}), i.e. xx is a convex combination of the viv_{i} (and O=0,O=0, so sum of coefficients of the viv_{i} is less than or equal to one), then xx can be written as the convex combination of at most dd of the vi,v_{i}, and O.O.

Proof.

See appendix. ∎


Finally, we can finish the second proof of Theorem 2.1.\textbf{Theorem 2.1}. Let v1,,vnv_{1},\ldots,v_{n} be the vector payoffs for player 1.1. Let H=H(O,v1,,vn)H=H(O,v_{1},\ldots,v_{n}) be the convex hull of the set of vectors, and let BB be the outer boundary of H.H.

From the characterization of these points, we know that a vector vnv\in\mathbb{R}^{n} is strictly dominated by a mix over a subset of {vj}=v1,,vn\{v_{j}\}=v_{1},\ldots,v_{n} if and only if there exists some bBb\in B such that v(k)<b(k)v_{(k)}<b_{(k)} for all components 1km.1\leq k\leq m. But BH,B\subset H, and we know from the corollary following Carathéodory’s Theorem that all points in HH can be represented as the affine sum of at most dd distinct vectors. Thus, if viv_{i} is strictly dominated by some such b,b, we can write bb as the affine linear combination of at most dd of the {vj},\{v_{j}\}, which means that viv_{i} is strictly dominated by a mix over those vj,v_{j}, and in particular, is dominated by at most dd of the other vectors as claimed. \blacksquare

We conclude by showing that the bound in Theorem 2.1 is tight in the following sense:

Proposition 3.8.

For every pair (n,m)22(n,m)\in\mathbb{Z}^{2}_{\geq 2} there exists a game Gn,mG_{n,m} with |A|=n|A|=n and |B|=m,|B|=m, and a strategy aiAa_{i}\in A that is strictly dominated by a mixed strategy over a set {aj}=A\{a_{j}\}=A^{\prime} of size |A|=min(|A|1,|B|),|A^{\prime}|=\min(|A|-1,|B|), and aia_{i} is not strictly dominated by a mixed strategy over any smaller set of actions. An analogous statement holds for player 2.

Proof.

We again represent pure strategies in their vector forms, with a pure strategy aia_{i} is associated to a vector vim,v_{i}\in\mathbb{R}^{m}, and a mixed strategy over {aj}\{a_{j}\} associated to a convex combination jλjvj.\sum_{j}\lambda_{j}v_{j}.

First suppose |A|1<|B|.|A|-1<|B|. Then, consider

v1\displaystyle v_{1} =(n,0,0,,0,1,,1)\displaystyle=(n,0,0,\ldots,0,1,\ldots,1)
v2\displaystyle v_{2} =(0,n,0,,0,1,,1)\displaystyle=(0,n,0,\ldots,0,1,\ldots,1)
v3\displaystyle v_{3} =(0,0,n,,0,1,,1)\displaystyle=(0,0,n,\ldots,0,1,\ldots,1)
\displaystyle\ldots
vn1\displaystyle v_{n-1} =(0,0,0,,n,1,,1)\displaystyle=(0,0,0,\ldots,n,1,\ldots,1)
vn\displaystyle v_{n} =(1,1,1,,1,0,,0)\displaystyle=(1,1,1,\ldots,1,0,\ldots,0)

where the kk-th coordinate of vkv_{k} is nn and the jj-th coordinate is zero for 1jn11\leq j\leq n-1 and is one for jn,j\geq n, for each 1kn1,1\leq k\leq n-1, and the first n1n-1 coordinates of vnv_{n} are zero. Then, we see that vnv_{n} is strictly dominated by the mixed strategy

1n1v1+1n1v2++1n1vn1=(nn1,nn1,,nn1,1,,1)(1,1,1,,1,0,,0),\tfrac{1}{n-1}v_{1}+\tfrac{1}{n-1}v_{2}+\cdots+\tfrac{1}{n-1}v_{n-1}=(\tfrac{n}{n-1},\tfrac{n}{n-1},\ldots,\tfrac{n}{n-1},1,\ldots,1)\gg(1,1,1,\ldots,1,0,\ldots,0),

but vnv_{n} is clearly not strictly dominated by a mixed strategy over any smaller set as each vkv_{k} for 1kn11\leq k\leq n-1 is needed in the mixed strategy.

Now, suppose that |B||A|1.|B|\leq|A|-1. Then, consider

v1\displaystyle v_{1} =(2m,0,0,,0)\displaystyle=(2m,0,0,\ldots,0)
v2\displaystyle v_{2} =(0,2m,0,,0)\displaystyle=(0,2m,0,\ldots,0)
v3\displaystyle v_{3} =(0,0,2m,,0)\displaystyle=(0,0,2m,\ldots,0)
\displaystyle\ldots
vm\displaystyle v_{m} =(0,0,0,,2m)\displaystyle=(0,0,0,\ldots,2m)
vm+1\displaystyle v_{m+1} =(1,1,1,,1)\displaystyle=(1,1,1,\ldots,1)
vk\displaystyle v_{k} =(0,0,0,,0)m+1<kn\displaystyle=(0,0,0,\ldots,0)\,\,\,\forall m+1<k\leq n

We see that vm+1v_{m+1} is strictly dominated by the mixed strategy

1mv1+1mv2++1mvm=(2,2,2,,2)(1,1,1,,1),\tfrac{1}{m}v_{1}+\tfrac{1}{m}v_{2}+\cdots+\tfrac{1}{m}v_{m}=(2,2,2,\ldots,2)\gg(1,1,1,\ldots,1),

but vmv_{m} is clearly not strictly dominated by any mixed strategy over a set of m1m-1 or fewer actions, as vkv_{k} for km+2k\geq m+2 are all zero vectors, and each vkv_{k} for kmk\leq m is needed as vkv_{k} is the only vector that has a positive kk-th coordinate.

4 Appendix

The appendix provides proofs of Caratheodory’s and Radon’s Theorems, as well as a new proof of Theorem 1.1 using the representation of dominance in section 2 and half-spaces.

We begin the proof of Theorem 1.1 with the following covering lemma.

Lemma 4.1.

(Rotation covering) Suppose two half spaces ax<0a\cdot x<0 (AA) and bx<0b\cdot x<0 (BB) together cover a compact convex set SS in n\mathbb{R}^{n}. Then there exists λ[0,1]\lambda\in[0,1] such that the half space CC given by (λa+(1λ)b)x<0(\lambda a+(1-\lambda)b)\cdot x<0 also covers S.S.

Proof.

Suppose neither AA nor BB covers SS by itself so λ(0,1).\lambda\in(0,1). Also assume that aa and bb are not parallel (linearly dependent) as that case can be easily handled.

Thus the hyperplanes ax=0a\cdot x=0 and bx=0b\cdot x=0 intersect at an n2n-2 dimensional subspace P.P. Note that PP lies entirely outside of S.S.

These two hyperplanes divide n\mathbb{R}^{n} into four quadrant regions based on the signs of axa\cdot x and bx.b\cdot x. For the region where ax<0a\cdot x<0 and bx<0b\cdot x<0 clearly (λa+(1λ)b)x<0.(\lambda a+(1-\lambda)b)\cdot x<0. So consider the other two regions. The parts of SS in them are SA=(SA)BS_{A}=(S\cap A)\setminus B and SB=(SB)AS_{B}=(S\cap B)\setminus A which lie in two different quadrants. By assumption that neither AA nor BB alone cover S,S, both SA,SBS_{A},S_{B} are nonempty. Also SA,SBS_{A},S_{B} are compact and convex.

Consider the plane CλC_{\lambda}: (λa+(1λ)b)x=0(\lambda a+(1-\lambda)b)\cdot x=0 as λ\lambda increases from zero to one. Note that C0C_{0} intersects SAS_{A} and C1C_{1} intersects SB.S_{B}. Suppose for contradiction that CλC_{\lambda} always intersects at least one of SAS_{A} and SB.S_{B}. As SA,SBS_{A},S_{B} are both closed, this means for some λ\lambda^{*} the plane intersects both SAS_{A} and SB,S_{B}, say at points pp and q.q.

We claim that the line segment pq¯\overline{pq} intersects P.P. Note that CλPQ1Q2C_{\lambda^{*}}\subset P\cup Q_{1}\cup Q_{2} where Q1={x:ax0,bx<0}Q_{1}=\{x:a\cdot x\geq 0,b\cdot x<0\} and Q2={x:bx0,ax<0}Q_{2}=\{x:b\cdot x\geq 0,a\cdot x<0\} where we used λ(0,1).\lambda\in(0,1). Since pQ1,qQ2,p\in Q_{1},q\in Q_{2}, as as we move from pp to qq along the segment, the signs of axa\cdot x and bxb\cdot x each change (from nonnegative to negative, or vice versa). But this can only happen at PP, which means that pq¯\overline{pq} intersects PP at some point z.z.

However as p,qSp,q\in S, by convexity, this means zS.z\in S. This contradicts the fact that PP does not intersect S.S.

Theorem 4.2.

(Equivalence of rationalizability and dominance) Given a finite, two player strategic game G,G, the set of (pure) strategies that remain after iterated elimination of strictly dominated strategies are precisely the strategies that are rationalizable in G.G.

Proof.

It is easy to show that any strictly dominated strategy is not rationalizable, so we focus on the reverse implication. As before, let player 1 have strategies {a1,,am}\{a_{1},\ldots,a_{m}\} and we denote by Sn={xnx1++xn=1,xi0i}S^{n}=\{x\in\mathbb{R}^{n}\mid x_{1}+\cdots+x_{n}=1,x_{i}\geq 0\,\,\forall i\} the n1n-1 dimensional simplex of probability vectors where nn is the number of actions of player 2. Thus, a belief player 1 has about player 2 is some qSn.q\in S^{n}.

As in the framework of section 2, we can represent each pure strategy aja_{j} as a linear function fj:Sn,f_{j}:S^{n}\to\mathbb{R}, whose image is a restricted hyperplane in n+1\mathbb{R}^{n+1}. Suppose the pure strategy aia_{i} represented by fi=gf_{i}=g is not rationalizable. Again by taking fj=fjgf_{j}^{\prime}=f_{j}-g for all jj we may assume that gg is identically 0 on SnS^{n}. For a slight abuse of notation, in the following we write aia_{i} to mean the payoff vector (ai,1,,ai,n)(a_{i,1},\ldots,a_{i,n}), so the expected payoff of playing the ii-th action under belief qq is fj(q)=aiqf_{j}(q)=a_{i}\cdot q.

For a given fjf_{j} the set of beliefs qq for which aja_{j} yields strictly higher payoff than aia_{i} are those that satisfy fj(q)=ajq>0f_{j}(q)=a_{j}\cdot q>0, ie. the intersection of an open half-space in n\mathbb{R}^{n} with Sn.S^{n}. Let this half-space be HjH_{j}.

If aia_{i} is a never best response, then the union of these HjH_{j} over all jij\neq i must cover SnS^{n} entirely. Similarly, for a mixed strategy σ=r1a1++rmam\sigma=r_{1}a_{1}+\cdots+r_{m}a_{m}, the beliefs for which σ\sigma yields higher payoff than aia_{i} are those qq satisfying (r1a1++rmam)q>0(r_{1}a_{1}+\cdots+r_{m}a_{m})\cdot q>0, which is also a half-space HσH_{\sigma}. Then, σ\sigma strictly dominates aia_{i} iff the half-space HσH_{\sigma} covers SnS^{n}.

The proof of the theorem follows from Lemma 4.2, which allows us to repeatedly replace a pair of (pure or mixed) strategies with a single mixed strategy, such that the union of the remaining half-spaces still covers SnS^{n}. This reduces the number of strategies while maintaining the covering invariant. Eventually, the process terminates with a single half-space HH^{*} that covers SnS^{n} by itself, which corresponds to a mixed strategy σ\sigma that dominates aia_{i}.

Indeed, suppose we have m1m-1 half spaces pjx<0p_{j}\cdot x<0\, (Hj)(H_{j}) for j[m]{i}j\in[m]\setminus\{i\} in n\mathbb{R}^{n} each representing a pure strategy aja_{j}, and their union covers the compact convex set of probability vectors SnS^{n}. We can now take two half spaces p1x<0p_{1}\cdot x<0 and p2x<0p_{2}\cdot x<0 and since H1H2H_{1}\cup H_{2} covers the convex compact set Sn(H3Hm)S^{n}\setminus(H_{3}\cup\cdots\cup H_{m}), there exists some λ\lambda such that the half space (λp1+(1λ)p2)x<0(\lambda p_{1}+(1-\lambda)p_{2})\cdot x<0 covers Sn(H3Hm),S^{n}\setminus(H_{3}\cup\cdots\cup H_{m}), and we can replace H1,H2H_{1},H_{2} with this halfspace instead. Thus, we have reduced the total number of half spaces while still covering Sn.S^{n}. Iterating this process, we eventually have a single half space of the form λ1a1++λmam<0\lambda_{1}a_{1}+\cdots+\lambda_{m}a_{m}<0 which covers Sn.S^{n}. Since we take convex combinations in each step, the weights are such that λ1++λm=1\lambda_{1}+\cdots+\lambda_{m}=1 with all λi0\lambda_{i}\geq 0, so this defines a mixed strategy σ\sigma which strictly dominates aia_{i}.

Theorem 4.3.

(Radon) Let PP be a set of nd+2n\geq d+2 distinct points in d.\mathbb{R}^{d}. Then, PP can be partitioned into two nonempty subsets V1V_{1} and V2V_{2} such that the convex hulls of V1V_{1} and V2V_{2} intersect.

Proof.

Consider any set X={x1,,xd+2}dX=\{x_{1},\ldots,x_{d+2}\}\subset\mathbb{R}^{d} of d+2d+2 points.

Then there exists multipliers a1,,ad+2a_{1},\ldots,a_{d+2}, not all zero, such that:

i=1d+2aixi=0,i=1d+2ai=0.\sum_{i=1}^{d+2}a_{i}x_{i}=0,\,\,\,\,\,\,\,\,\,\,\sum_{i=1}^{d+2}a_{i}=0.

Take some particular nontrivial solution a1,,ad+2a_{1},\ldots,a_{d+2}. Let YXY\subseteq X be the set of points with positive multipliers and Z=XYZ=X\setminus Y be the set of points with negative or zero multiplier. Observe that YY and ZZ forms a partition of XX into two subsets with intersecting convex hulls.

Indeed, H(Y)H(Y) and H(Z)H(Z) necessarily intersect because they each contain the point

p=xiYaiAxi=xiZaiAxi,p=\sum_{x_{i}\in Y}\frac{a_{i}}{A}x_{i}=\sum_{x_{i}\in Z}\frac{-a_{i}}{A}x_{i},

where A=xiYai=xiZaiA=\sum_{x_{i}\in Y}a_{i}=-\sum_{x_{i}\in Z}a_{i}. So we have expressed pp as convex combination of points in YY and also as a convex combination of points in ZZ, which means that pp lies in the intersection of the convex hulls.

Theorem 4.4.

(Carathéodory) If a point xdx\in\mathbb{R}^{d} lies in the convex hull of a set P,P, then xx can be written as the convex combination of at most d + 1 points in P.P. i.e. there is a subset PPP^{\prime}\subset P consisting of d+1d+1 or fewer points such that xH(P).x\in H(P^{\prime}).

Proof.

Suppose xx can be written as a convex combination of k>d+1k>d+1 of the points xiP.x_{i}\in P. Without loss of generality, they are x1,,xk.x_{1},\ldots,x_{k}. Thus, we can write x=j=1kλjxj,x=\sum_{j=1}^{k}\lambda_{j}x_{j}, where 0<λj10<\lambda_{j}\leq 1 and j=1kλj=1.\sum_{j=1}^{k}\lambda_{j}=1.

Then, consider x2x1,,xkx1,x_{2}-x_{1},\ldots,x_{k}-x_{1}, which is a linearly dependent set, so there exists μj\mu_{j} for 2jk2\leq j\leq k not all zero such that j=2kμj(xjx1)=0\sum_{j=2}^{k}\mu_{j}(x_{j}-x_{1})=0 and not all are zero. Then, if we set μ1=j=2kμj,\mu_{1}=-\sum_{j=2}^{k}\mu_{j}, this means that j=1kμjxj=0\sum_{j=1}^{k}\mu_{j}x_{j}=0 as well as j=1kμj=0,\sum_{j=1}^{k}\mu_{j}=0, and not all of the μj\mu_{j} are equal to zero, so there exists some μj>0.\mu_{j}>0.

Now let α=min1jk{λjμj:μj>0}=λiμi.\alpha=\min_{1\leq j\leq k}\left\{\frac{\lambda_{j}}{\mu_{j}}:\mu_{j}>0\right\}=\frac{\lambda_{i}}{\mu_{i}}. Note that α>0.\alpha>0. Then, we have
x=j=1kλjxjαj=1kμjxj=j=1k(λjαμj)xjx=\sum_{j=1}^{k}\lambda_{j}x_{j}-\alpha\sum_{j=1}^{k}\mu_{j}x_{j}=\sum_{j=1}^{k}(\lambda_{j}-\alpha\mu_{j})x_{j}. Since α>0,\alpha>0, then λjαμj0\lambda_{j}-\alpha\mu_{j}\geq 0 for all j.j.
Also, j=1k(λjαμj)=j=1kλjαj=1kμj=1α0=1.\sum_{j=1}^{k}(\lambda_{j}-\alpha\mu_{j})=\sum_{j=1}^{k}\lambda_{j}-\alpha\sum_{j=1}^{k}\mu_{j}=1-\alpha\cdot 0=1.
However, by definition, λiαμi=0.\lambda_{i}-\alpha\mu_{i}=0. Thus, x=1jk,ji(λjαμj)xj,x=\sum_{1\leq j\leq k,j\neq i}(\lambda_{j}-\alpha\mu_{j})x_{j}, where every λjαμj\lambda_{j}-\alpha\mu_{j} is non-negative and their sum is one.

In other words, xx is a convex combination of k1k-1 points in P.P. Repeating this process, we can write xx as a convex combination of at most d+1d+1 points in P,P, as desired. ∎


Theorem 4.5.

(Carathéodory’s Theorem for Conical Hull)   Let nd+1n\geq d+1 and v1,,vnv_{1},\ldots,v_{n} be nn distinct nonzero vectors in d.\mathbb{R}^{d}. Consider the conical hull formed by this set. Then, if a nonzero point xx is in the conical hull, xx can be written as the conical combination of at most dd of the vi.v_{i}.

Proof.

Suppose xx is expressed as the conical combination of k>dk>d of the vi,v_{i}, without loss of generality, v1,,vk.v_{1},\ldots,v_{k}. Then, x=j=1kλjvj,x=\sum_{j=1}^{k}\lambda_{j}v_{j}, where λj>0\lambda_{j}>0 for all 1jk.1\leq j\leq k. Since k>d,k>d, then v1,,vkv_{1},\ldots,v_{k} is linearly dependent, so there exists μj,\mu_{j}, not all equal to zero, such that j=1kμjvj=0.\sum_{j=1}^{k}\mu_{j}v_{j}=0. By multiplying each μj\mu_{j} by 1-1 if necessary, we can ensure that at least one of these μj\mu_{j} must be positive. Without loss of generality, we may also assume that j=1kμj0\sum_{j=1}^{k}\mu_{j}\geq 0 because if the sum were less than zero (then there would exist some negative μj),\mu_{j}), we could multiply each μj\mu_{j} by 1.-1. Now, note that for any α,\alpha, we have j=1k(λjαμj)vj=j=1kλjvjαj=1kμjvj=x.\sum_{j=1}^{k}(\lambda_{j}-\alpha\mu_{j})v_{j}=\sum_{j=1}^{k}\lambda_{j}v_{j}-\alpha\sum_{j=1}^{k}\mu_{j}v_{j}=x. We want to choose some α\alpha such that λiαμi=0\lambda_{i}-\alpha\mu_{i}=0 for some i,i, and all λjαμj0.\lambda_{j}-\alpha\mu_{j}\geq 0.

Indeed, if we let α=min1jk{λjμj:μj>0}=λiμi>0,\alpha=\min_{1\leq j\leq k}\left\{\frac{\lambda_{j}}{\mu_{j}}:\mu_{j}>0\right\}=\frac{\lambda_{i}}{\mu_{i}}>0, then we do have λjαμj0\lambda_{j}-\alpha\mu_{j}\geq 0 for all j.j. If μj0,\mu_{j}\leq 0, then since λj>0,\lambda_{j}>0, we have λjαλj0.\lambda_{j}-\alpha\lambda_{j}\geq 0. And if μj>0,\mu_{j}>0, we have 0<α=λiμiλjμj,0<\alpha=\frac{\lambda_{i}}{\mu_{i}}\leq\frac{\lambda_{j}}{\mu_{j}}, and again λjαλj0.\lambda_{j}-\alpha\lambda_{j}\geq 0. Thus, x=j=1k(λjαμj)vjx=\sum_{j=1}^{k}(\lambda_{j}-\alpha\mu_{j})v_{j} represents a conical combination using at most k1k-1 of the vi,v_{i}, as all λjαμj0,\lambda_{j}-\alpha\mu_{j}\geq 0, and λiαμi=0.\lambda_{i}-\alpha\mu_{i}=0. We can repeat this process until we are left with at most dd of the vi,v_{i}, and so xx is the conical combination of at most dd of the viv_{i} as desired. ∎


Corollary 4.6.

Furthermore, if xx also lies in the convex hull H(O,v1,,vn),H(O,v_{1},\ldots,v_{n}), i.e. xx is a convex combination of the viv_{i} (and O=0,O=0, so sum of coefficients of the viv_{i} is less than or equal to one), then xx can be written as the convex combination of at most dd of the vi,v_{i}, and O.O.

Proof.

If xx lies in the convex hull H(O=v0,v1,,vk)H(O=v_{0},v_{1},\ldots,v_{k}), that means that x=j=0kλjvj,x=\sum_{j=0}^{k}\lambda_{j}v_{j}, where λj>0\lambda_{j}>0 and j=0kλj=1.\sum_{j=0}^{k}\lambda_{j}=1. Since O=0,O=0, this is the same as saying that j=1kλj1.\sum_{j=1}^{k}\lambda_{j}\leq 1. Again, if k>d,k>d, then we can write j=1kμjvj=0,\sum_{j=1}^{k}\mu_{j}v_{j}=0, where we can assume that j=1kμj0.\sum_{j=1}^{k}\mu_{j}\geq 0. But then in the preceding proof, we have that j=1k(λjαμj)=j=1kλjαj=1kμjj=1kλj1,\sum_{j=1}^{k}(\lambda_{j}-\alpha\mu_{j})=\sum_{j=1}^{k}\lambda_{j}-\alpha\sum_{j=1}^{k}\mu_{j}\leq\sum_{j=1}^{k}\lambda_{j}\leq 1, as α>0\alpha>0 and j=1kμj0.\sum_{j=1}^{k}\mu_{j}\geq 0. Again, recall that λiαμi=0,\lambda_{i}-\alpha\mu_{i}=0, and each of the λjαμj0.\lambda_{j}-\alpha\mu_{j}\geq 0.

Thus, xx lies in the convex hull of H(v0,v1,,vi1,vi+1,,vk).H(v_{0},v_{1},\ldots,v_{i-1},v_{i+1},\ldots,v_{k}). Like before, by repeating this process, we can show that xx lies in the convex hull HH^{*} of at most dd of the nonzero vi,v_{i}, along with v0,v_{0}, i.e. xH(v0,vj1,,vjd).x\in H(v_{0},v_{j_{1}},\ldots,v_{j_{d}}).

Acknowledgements

I would like to thank Scott Gehlbach at the University of Chicago Political Science department (and Harris’ Political Economy program) for teaching me game theory during my first year SSI Formal Theory class. Prof. Gehlbach introduced the concepts of iterated dominance and rationalizability to me, and this paper grew out of some observations I made from examples in his class. I would also like to thank various UChicago economics and computer science professors for kindly taking a look at the paper and giving feedback during Winter/Spring 2022. Roger Myerson also provided some important suggestions about improving the details of the paper, and the last proposition showing the bound is tight is partly motivated by his observation.

References

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[4] Yildiz, M. Rationalizability lecture notes. https://dspace.mit.edu/handle/1721.1/99213

[5] Obara, I. Rationalizability and Iterated Elimination of Dominated Strategies
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