Finite Rationality and Interpersonal Complexity in Repeated Games
AbstractFinite complexity strategies suffice for approximating all subgame perfect equ ilibrium payoffs of repeated games. Generically, at such equilibria, no player's complexity exceeds the product of his opponents' complexi ties. Also, no player's memory exceeds the maximal memory of his oppo nents. The complexity of a strategy is defined here to equal the numb er of distinct strategies it induces in the various subgames. It equa ls the size (number of states) of the smallest automaton describing i t and also the number of states of the smallest information system ne eded for the implementation of the strategy. Copyright 1988 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.
Bibliographic InfoPaper provided by Northwestern University, Center for Mathematical Studies in Economics and Management Science in its series Discussion Papers with number 679.
Date of creation: Apr 1986
Date of revision:
Contact details of provider:
Postal: Center for Mathematical Studies in Economics and Management Science, Northwestern University, 580 Jacobs Center, 2001 Sheridan Road, Evanston, IL 60208-2014
Web page: http://www.kellogg.northwestern.edu/research/math/
More information through EDIRC
Other versions of this item:
- Kalai, Ehud & Stanford, William, 1988. "Finite Rationality and Interpersonal Complexity in Repeated Games," Econometrica, Econometric Society, vol. 56(2), pages 397-410, March.
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.:
- Smale, Steve, 1980. "The Prisoner's Dilemma and Dynamical Systems Associated to Non-Cooperative Games," Econometrica, Econometric Society, vol. 48(7), pages 1617-34, November.
- Futia, Carl, 1977. "The complexity of economic decision rules," Journal of Mathematical Economics, Elsevier, vol. 4(3), pages 289-299, December.
- Kalai, Ehud & Samet, Dov & Stanford, William, 1988. "A Note on Reactive Equilibria in the Discounted Prisoner's Dilemma and Associated Games," International Journal of Game Theory, Springer, vol. 17(3), pages 177-86.
- Friedman, James W, 1971. "A Non-cooperative Equilibrium for Supergames," Review of Economic Studies, Wiley Blackwell, vol. 38(113), pages 1-12, January.
- Fudenberg, Drew & Levine, David, 1983.
"Subgame-perfect equilibria of finite- and infinite-horizon games,"
Journal of Economic Theory,
Elsevier, vol. 31(2), pages 251-268, December.
- Drew Fudenberg & David K. Levine, 1983. "Subgame-Perfect Equilibria of Finite- and Infinite-Horizon Games," Levine's Working Paper Archive 219, David K. Levine.
- Stanford, William G., 1986. "On continuous reaction function equilibria in duopoly supergames with mean payoffs," Journal of Economic Theory, Elsevier, vol. 39(1), pages 233-250, June.
- Stanford, William G., 1986. "Subgame perfect reaction function equilibria in discounted duopoly supergames are trivial," Journal of Economic Theory, Elsevier, vol. 39(1), pages 226-232, June.
- Radner, Roy, 1980. "Collusive behavior in noncooperative epsilon-equilibria of oligopolies with long but finite lives," Journal of Economic Theory, Elsevier, vol. 22(2), pages 136-154, April.
- Neyman, Abraham, 1985. "Bounded complexity justifies cooperation in the finitely repeated prisoners' dilemma," Economics Letters, Elsevier, vol. 19(3), pages 227-229.
This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page. reading list or among the top items on IDEAS.Access and download statisticsgeneral 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: (Fran Walker).
If references are entirely missing, you can add them using this form.