Finite Rationality and Interpersonal Complexity in Repeated Games
AbstractFinite complexity strategies suffice for approximating all subgame perfect equ ilibrium payoffs of repeated games. Generically, at such equilibria, no player's complexity exceeds the product of his opponents' complexi ties. Also, no player's memory exceeds the maximal memory of his oppo nents. The complexity of a strategy is defined here to equal the numb er of distinct strategies it induces in the various subgames. It equa ls the size (number of states) of the smallest automaton describing i t and also the number of states of the smallest information system ne eded for the implementation of the strategy. Copyright 1988 by The Econometric Society.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Econometric Society in its journal Econometrica.
Volume (Year): 56 (1988)
Issue (Month): 2 (March)
Other versions of this item:
- Ehud Kalai & William Stanford, 1986. "Finite Rationality and Interpersonal Complexity in Repeated Games," Discussion Papers 679, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Friedman, James W, 1971. "A Non-cooperative Equilibrium for Supergames," Review of Economic Studies, Wiley Blackwell, vol. 38(113), pages 1-12, January.
- Radner, Roy, 1980. "Collusive behavior in noncooperative epsilon-equilibria of oligopolies with long but finite lives," Journal of Economic Theory, Elsevier, vol. 22(2), pages 136-154, April.
- Drew Fudenberg & David K. Levine, 1983.
"Subgame-Perfect Equilibria of Finite- and Infinite-Horizon Games,"
Levine's Working Paper Archive
219, David K. Levine.
- Fudenberg, Drew & Levine, David, 1983. "Subgame-perfect equilibria of finite- and infinite-horizon games," Journal of Economic Theory, Elsevier, vol. 31(2), pages 251-268, December.
- Stanford, William G., 1986. "On continuous reaction function equilibria in duopoly supergames with mean payoffs," Journal of Economic Theory, Elsevier, vol. 39(1), pages 233-250, June.
- Futia, Carl, 1977. "The complexity of economic decision rules," Journal of Mathematical Economics, Elsevier, vol. 4(3), pages 289-299, December.
- Neyman, Abraham, 1985. "Bounded complexity justifies cooperation in the finitely repeated prisoners' dilemma," Economics Letters, Elsevier, vol. 19(3), pages 227-229.
- Kalai, Ehud & Samet, Dov & Stanford, William, 1988. "A Note on Reactive Equilibria in the Discounted Prisoner's Dilemma and Associated Games," International Journal of Game Theory, Springer, vol. 17(3), pages 177-86.
- Stanford, William G., 1986. "Subgame perfect reaction function equilibria in discounted duopoly supergames are trivial," Journal of Economic Theory, Elsevier, vol. 39(1), pages 226-232, June.
- Smale, Steve, 1980. "The Prisoner's Dilemma and Dynamical Systems Associated to Non-Cooperative Games," Econometrica, Econometric Society, vol. 48(7), pages 1617-34, November.
This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page. reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.