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Complexity and Effective Prediction

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  • Abraham Neyman
  • Joel Spencer

Abstract

Let G= be a two-person zero-sum game. We examine the two-person zero-sum repeated game G(k,m) in which players 1 and 2 place down finite state automata with k,m states respectively and the payoff is the average per-stage payoff when the two automata face off. We are interested in the cases in which player 1 is "smart" in the sense that k is large but player 2 is "much smarter" in the sense that m>>k. Let S(g) be the value of G where the second player is clairvoyant, i.e., would know player 1's move in advance. The threshold for clairvoyance is shown to occur for m near . For m of roughly that size, in the exponential scale, the value is close to S(g). For m significantly smaller (for some stage payoffs g) the value does not approach S(g).

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Bibliographic Info

Paper provided by UCLA Department of Economics in its series Levine's Bibliography with number 321307000000000527.

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Date of creation: 27 Oct 2006
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Handle: RePEc:cla:levrem:321307000000000527

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  1. Abraham Neyman, 2008. "Learning Effectiveness and Memory Size," Discussion Paper Series dp476, The Center for the Study of Rationality, Hebrew University, Jerusalem.
  2. Ben-Porath Elchanan, 1993. "Repeated Games with Finite Automata," Journal of Economic Theory, Elsevier, vol. 59(1), pages 17-32, February.
  3. Abraham Neyman & Daijiro Okada, 2000. "Two-person repeated games with finite automata," International Journal of Game Theory, Springer, vol. 29(3), pages 309-325.
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Cited by:
  1. Abraham Neyman, 2008. "Learning Effectiveness and Memory Size," Levine's Working Paper Archive 122247000000001945, David K. Levine.
  2. Ron Peretz, 2011. "Correlation through Bounded Recall Strategies," Discussion Paper Series dp579, The Center for the Study of Rationality, Hebrew University, Jerusalem.
  3. Ron Peretz, 2013. "Correlation through bounded recall strategies," International Journal of Game Theory, Springer, vol. 42(4), pages 867-890, November.

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