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The Strategic Value of Recall

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  • Ron Peretz

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    Abstract

    This work studies the value of two-person zero-sum repeated games in which at least one of the players is restricted to (mixtures of) bounded recall strategies. A (pure) k-recall strategy is a strategy that relies only on the last k periods of history. This work improves previous results [Lehrer, Neyman and Okada] on repeated games with bounded recall. We provide an explicit formula for the asymptotic value of the repeated game as a function of the stage game, the duration of the repeated game, and the recall of the agents.

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    File URL: http://ratio.huji.ac.il/sites/default/files/publications/dp470.pdf
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    Bibliographic Info

    Paper provided by The Center for the Study of Rationality, Hebrew University, Jerusalem in its series Discussion Paper Series with number dp470.

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    Length: 19 pages
    Date of creation: Nov 2007
    Date of revision:
    Handle: RePEc:huj:dispap:dp470

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    1. Neyman, Abraham & Okada, Daijiro, 2009. "Growth of strategy sets, entropy, and nonstationary bounded recall," Games and Economic Behavior, Elsevier, vol. 66(1), pages 404-425, May.
    2. Lehrer Ehud, 1994. "Finitely Many Players with Bounded Recall in Infinitely Repeated Games," Games and Economic Behavior, Elsevier, vol. 7(3), pages 390-405, November.
    3. Neyman, Abraham & Okada, Daijiro, 2000. "Repeated Games with Bounded Entropy," Games and Economic Behavior, Elsevier, vol. 30(2), pages 228-247, February.
    4. Abraham Neyman Null & Daijiro Okada, 2005. "Growth of Strategy Sets, Entropy and Nonstationary Bounded Recall," Departmental Working Papers 200514, Rutgers University, Department of Economics.
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    Cited by:
    1. Abraham Neyman, 2008. "Learning Effectiveness and Memory Size," Levine's Working Paper Archive 122247000000001945, David K. Levine.

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