Rationality, Computability, and Nash Equilibrium
AbstractSuppose two agents play a game, each using a computable algorithm to decide what to do, these algorithms being common knowledge. The author shows that it is possible to act rationally provided he limits his attention to a natural subset of solvable games and to opponents who use rational algorithms; the outcome is a Nash equilibrium. Going further, the author shows that rationality is possible on many domains of games and opposing algorithms but each domain requires a particular solution algorithm; no one algorithm is rational on all possible domains. Copyright 1992 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): 60 (1992)
Issue (Month): 4 (July)
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- David K Levine & Balázs Szentes, 2006. "Can A Turing Player Identify Itself?," Levine's Working Paper Archive 618897000000001015, David K. Levine.
- repec:ebl:ecbull:v:1:y:2006:i:1:p:1-6 is not listed on IDEAS
- Sheri M. Markose, 2004. "Novelty And Surprises In Complex Adaptive System (CAS) Dynamics: A Computational Theory of Actor Innovation," Economics Discussion Papers 575, University of Essex, Department of Economics.
- Koppl, Roger, 2010. "Some epistemological implications of economic complexity," Journal of Economic Behavior & Organization, Elsevier, vol. 76(3), pages 859-872, December.
- Horaguchi, Haruo, 1996. "The role of information processing cost as the foundation of bounded rationality in game theory," Economics Letters, Elsevier, vol. 51(3), pages 287-294, June.
- William R. Zame & John H. Nachbar, 1996.
"Non-computable strategies and discounted repeated games,"
Springer, vol. 8(1), pages 103-122.
- Nachbar, John H & Zame, William R, 1996. "Non-computable Strategies and Discounted Repeated Games," Economic Theory, Springer, vol. 8(1), pages 103-22, June.
- William R. Zame, 1995. "Non-Computable Strategies and Discounted Repeated Games," UCLA Economics Working Papers 735, UCLA Department of Economics.
- Siegfried Berninghaus & Werner Güth & Hartmut Kliemt, .
"Reflections on Equilibrium - Ideal Rationality and Analytic Decomposition of Games,"
Papers on Strategic Interaction
2003-08, Max Planck Institute of Economics, Strategic Interaction Group.
- Siegfried Berninghaus & Werner Güth & Hartmut Kliemt, 2003. "Reflections on Equilibrium: Ideal Rationality and Analytic Decomposition of Games," Homo Oeconomicus, Institute of SocioEconomics, vol. 20, pages 257-302.
- Anderlini, Luca, 1998. "Forecasting errors and bounded rationality: An example," Mathematical Social Sciences, Elsevier, vol. 36(2), pages 71-90, September.
- Kumabe, Masahiro & Mihara, H. Reiju, 2006.
"Computability of simple games: A characterization and application to the core,"
437, University Library of Munich, Germany.
- Kumabe, Masahiro & Mihara, H. Reiju, 2008. "Computability of simple games: A characterization and application to the core," Journal of Mathematical Economics, Elsevier, vol. 44(3-4), pages 348-366, February.
- Richter, Marcel K. & Wong, Kam-Chau, 1999. "Computable preference and utility," Journal of Mathematical Economics, Elsevier, vol. 32(3), pages 339-354, November.
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.