A label-state formulation of stochastic graphon games and approximate equilibria on large networks

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This paper studies stochastic games on large graphs and their graphon limits.

• We propose a new formulation of graphon games based on a single typical player's label-state distribution.
• In contrast, other recently proposed models of graphon games work directly with a continuum of players, which involves serious measure-theoretic technicalities.
• In fact, by viewing the label as a component of the state process, we show in our formulation that graphon games are a special case of mean field games, albeit with certain inevitable degeneracies and discontinuities that make most existing results on mean field games inapplicable.