A PSO based algorithm for finding global Nash equilibrium

Nash equilibrium (NE) is an essential concept of game theory. Researchers have shown that iterative NE search algorithms based on local optimization cannot differentiate between the global NE and local NE in games with local optima. In this paper, an algorithm based on Particle Swarm Optimization (PSO) is introduced which can find the global NE in games with local optima. The applicability of this proposed method is shown via two power system case studies to find the NE in power market.