A minority game with bounded recall
Abstract
This paper studies a repeated minority game with public signals, symmetric bounded recall, and pure strategies. We investigate both public and private equilibria of the game with fixed recall size. We first show how public equilibria in such a repeated game can be represented as colored subgraphs of a de Bruijn graph. Then we prove that the set of public equilibrium payoffs with bounded recall converges to the set of uniform equilibrium payoffs as the size of the recall increases. We also show that private equilibria behave badly: A private equilibrium payoff with bounded recall need not be a uniform equilibrium payoff.Download Info
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Paper provided by Université Paris-Dauphine in its series Open Access publications from Université Paris-Dauphine with number urn:hdl:123456789/6381.Length:
Date of creation: 2007
Date of revision:
Publication status: Published in Mathematics of Operations Research (2007) v.32, p.873-889
Handle: RePEc:ner:dauphi:urn:hdl:123456789/6381
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Related research
Keywords: folk theorem; de Bruijn sequence; imperfect monitoring; uniform equilibrium; public equilibrium; private equilibrium;Other versions of this item:
- Renault, Jérôme & Scarsini, Marco & Tomala, Tristan, 2007. "A Minority Game with Bounded Recall," Open Access publications from University of Toulouse 1 Capitole http://neeo.univ-tlse1.fr, University of Toulouse 1 Capitole.
- C44 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Operations Research; Statistical Decision Theory
References
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- George J. Mailath & Wojciech Olszewski, 2008.
"Folk Theorems with Bounded Recall under (Almost) Perfect Monitoring,"
PIER Working Paper Archive
08-019, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
- Mailath, George J. & Olszewski, Wojciech, 2011. "Folk theorems with bounded recall under (almost) perfect monitoring," Games and Economic Behavior, Elsevier, vol. 71(1), pages 174-192, January.
- George Mailath & Wojciech Olszewski, 2008. "Folk theorems with Bounded Recall under(Almost) Perfect Monitoring," Discussion Papers 1462, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Scarsini, Marco & Renault, Jérôme & Tomala, Tristan, 2008.
"Playing off-line games with bounded rationality,"
Open Access publications from Université Paris-Dauphine
urn:hdl:123456789/6127, Université Paris-Dauphine.
- Renault, Jérôme & Scarsini, Marco & Tomala, Tristan, 2008. "Playing off-line games with bounded rationality," Mathematical Social Sciences, Elsevier, vol. 56(2), pages 207-223, September.
- Renault, Jérôme & Scarsini, Marco & Tomala, Tristan, 2008. "Playing off-line games with bounded rationality," Open Access publications from University of Toulouse 1 Capitole http://neeo.univ-tlse1.fr, University of Toulouse 1 Capitole.
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