Growth of Strategy Sets, Entropy and Nonstationary Bounded Recall
AbstractThis paper initiates the study of long term interactions where players' bounded rationality varies over time. Time dependent bounded rationality is reflected in part in the number $\psi(t)$ of distinct strategies in the first $t$-stages. We examine how the growth rate of $\psi_i(t)$ affects equilibrium outcomes of repeated games, and, as a special case, we study the repeated games with nonstationary bounded recall.
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Bibliographic InfoPaper provided by Rutgers University, Department of Economics in its series Departmental Working Papers with number 200514.
Date of creation: 24 Nov 2005
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bounded rationality; strategy set growth; strategic complexity; nonstationary bounded recall; repeated games;
Find related papers by JEL classification:
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
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