Advanced Search
MyIDEAS: Login

Growth of Strategy Sets, Entropy, and Nonstationary Bounded Recall

Contents:

Author Info

  • Abraham Neyman
  • Daijiro Okada

Abstract

The paper initiates the study of long term interactions where players' bounded rationality varies over time. Time dependent bounded rationality, for player i, is reflected in part in the number [psi]i(t) of distinct strategies available to him in the first t-stages. We examine how the growth rate of [psi]i(t) affects equilibrium outcomes of repeated games. An upper bound on the individually rational payoff is derived for a class of two-player repeated games, and the derived bound is shown to be tight. As a special case we study the repeated games with nonstationary bounded recall and show that, a player can guarantee the minimax payoff of the stage game, even against a player with full recall, by remembering a vanishing fraction of the past. A version of the folk theorem is provided for this class of games.

(This abstract was borrowed from another version of this item.)

Download Info

If 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.
File URL: http://ratio.huji.ac.il/dp/dp411.pdf
Our checks indicate that this address may not be valid because: 404 Not Found. If this is indeed the case, please notify (David K. Levine)
Download Restriction: no

Bibliographic Info

Paper provided by UCLA Department of Economics in its series Levine's Bibliography with number 122247000000000920.

as in new window
Length:
Date of creation: 30 Dec 2005
Date of revision:
Handle: RePEc:cla:levrem:122247000000000920

Contact details of provider:
Web page: http://www.dklevine.com/

Related research

Keywords:

Other versions of this item:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
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.:
as in new window
  1. Lehrer, Ehud, 1988. "Repeated games with stationary bounded recall strategies," Journal of Economic Theory, Elsevier, vol. 46(1), pages 130-144, October.
  2. Gossner, Olivier & Vieille, Nicolas, 2002. "How to play with a biased coin?," Games and Economic Behavior, Elsevier, vol. 41(2), pages 206-226, November.
  3. Neyman, Abraham, 1985. "Bounded complexity justifies cooperation in the finitely repeated prisoners' dilemma," Economics Letters, Elsevier, vol. 19(3), pages 227-229.
  4. Abraham Neyman & Daijiro Okada, 2000. "Two-person repeated games with finite automata," International Journal of Game Theory, Springer, vol. 29(3), pages 309-325.
  5. Olivier Gossner & Penelope Hernandez & Abraham Neyman, 2004. "Optimal Use of Communication Resources," Discussion Paper Series dp377, The Center for the Study of Rationality, Hebrew University, Jerusalem.
  6. Aumann, Robert J., 1997. "Rationality and Bounded Rationality," Games and Economic Behavior, Elsevier, vol. 21(1-2), pages 2-14, October.
  7. Neyman, Abraham & Okada, Daijiro, 2000. "Repeated Games with Bounded Entropy," Games and Economic Behavior, Elsevier, vol. 30(2), pages 228-247, February.
  8. Robert J. Aumann & Lloyd S. Shapley, 1992. "Long Term Competition-A Game Theoretic Analysis," UCLA Economics Working Papers 676, UCLA Department of Economics.
  9. Ben-Porath Elchanan, 1993. "Repeated Games with Finite Automata," Journal of Economic Theory, Elsevier, vol. 59(1), pages 17-32, February.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Ron Peretz, 2007. "The Strategic Value of Recall," Levine's Bibliography 122247000000001774, UCLA Department of Economics.
  2. Abraham Neyman, 2008. "Learning Effectiveness and Memory Size," Discussion Paper Series dp476, The Center for the Study of Rationality, Hebrew University, Jerusalem.
  3. Ron Peretz, 2007. "The Strategic Value of Recall," Discussion Paper Series dp470, The Center for the Study of Rationality, Hebrew University, Jerusalem.
  4. Peretz, Ron, 2012. "The strategic value of recall," Games and Economic Behavior, Elsevier, vol. 74(1), pages 332-351.
  5. Ron Peretz, 2011. "Correlation through Bounded Recall Strategies," Discussion Paper Series dp579, The Center for the Study of Rationality, Hebrew University, Jerusalem.
  6. Ron Peretz, 2013. "Correlation through bounded recall strategies," International Journal of Game Theory, Springer, vol. 42(4), pages 867-890, November.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:cla:levrem:122247000000000920. See general 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: (David K. Levine).

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.