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Inductive Game Theory: A Basic Scenario

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  • Mamoru Kaneko

    ()
    (Institute of Policy and Planning Sciences, University of Tsukuba)

  • J. Jude Kline

    ()
    (Department of Economics, School of Business, Bond University)

Abstract

The aim of this paper is to present the new theory called “inductive game theory”. A paper, published by one of the present authors with A. Matsui, discussed some part of inductive game theory in a specific game. Here, we will give a more developed discourse of the theory. The paper is written to show one entire picture of the theory: From individual raw experiences, short-term memories to long-term memories, inductive derivation of individual views, classification of such views, decision making or modification of behavior based on a view, and repercussion from the modified play in the objective game. We focus on some clear-cut cases, forgetting a lot of possible variants, but will still give a lot of results. In order to show one possible discourse as a whole, we will ask the question of how Nash equilibrium is emerging from the viewpoint of inductive game theory, and will give one answer.

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Bibliographic Info

Paper provided by Institute of Economics, Academia Sinica, Taipei, Taiwan in its series IEAS Working Paper : academic research with number 06-A001.

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Length: 57 pages
Date of creation: Jan 2006
Date of revision:
Handle: RePEc:sin:wpaper:06-a001

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References

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  1. Gilboa, Itzhak & Schmeidler, David, 1995. "Case-Based Decision Theory," The Quarterly Journal of Economics, MIT Press, vol. 110(3), pages 605-39, August.
  2. Nobu-Yuki Suzuki & Mamoru Kaneko, 2002. "Bounded interpersonal inferences and decision making," Economic Theory, Springer, vol. 19(1), pages 63-103.
  3. Brandenburger Adam & Dekel Eddie, 1993. "Hierarchies of Beliefs and Common Knowledge," Journal of Economic Theory, Elsevier, vol. 59(1), pages 189-198, February.
  4. Pradeep Dubey & Mamoru Kaneko, 1983. "Information Patterns and Nash Equilibria in Extensive Games," Cowles Foundation Discussion Papers 676, Cowles Foundation for Research in Economics, Yale University.
  5. Kalai, Ehud & Lehrer, Ehud, 1993. "Subjective Equilibrium in Repeated Games," Econometrica, Econometric Society, vol. 61(5), pages 1231-40, September.
  6. Piccione, Michele & Rubinstein, Ariel, 1997. "On the Interpretation of Decision Problems with Imperfect Recall," Games and Economic Behavior, Elsevier, vol. 20(1), pages 3-24, July.
  7. Harsanyi, John C., 1994. "Games with Incomplete Information," Nobel Prize in Economics documents 1994-1, Nobel Prize Committee.
  8. Dubey, Pradeep & Kaneko, Mamoru, 1985. "Information patterns and Nash equilibria in extensive games -- II," Mathematical Social Sciences, Elsevier, vol. 10(3), pages 247-262, December.
  9. Mamoru Kaneko, 2002. "Epistemic logics and their game theoretic applications: Introduction," Economic Theory, Springer, vol. 19(1), pages 7-62.
  10. Fudenberg, D. & Levine, D.K., 1991. "Self-Confirming Equilibrium ," Working papers 581, Massachusetts Institute of Technology (MIT), Department of Economics.
  11. Ritzberger, Klaus, 2002. "Foundations of Non-Cooperative Game Theory," OUP Catalogue, Oxford University Press, number 9780199247868, September.
  12. Kaneko, Mamoru & Matsui, Akihiko, 1999. " Inductive Game Theory: Discrimination and Prejudices," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 1(1), pages 101-37.
  13. Martin J. Osborne & Ariel Rubinstein, 1994. "A Course in Game Theory," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262650401, December.
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Cited by:
  1. Mamoru Kaneko, 2013. "Symposium: logic and economics—interactions between subjective thinking and objective worlds," Economic Theory, Springer, vol. 53(1), pages 1-8, May.
  2. Tai-Wei Hu, 2013. "Expected utility theory from the frequentist perspective," Economic Theory, Springer, vol. 53(1), pages 9-25, May.
  3. Lippert, Steffen & Spagnolo, Giancarlo, 2011. "Networks of relations and Word-of-Mouth Communication," Games and Economic Behavior, Elsevier, vol. 72(1), pages 202-217, May.
  4. Mamoru Kaneko & J. Kline, 2013. "Partial memories, inductively derived views, and their interactions with behavior," Economic Theory, Springer, vol. 53(1), pages 27-59, May.
  5. Hanaki, Nobuyuki & Ishikawa, Ryuichiro & Akiyama, Eizo, 2009. "Learning games," Journal of Economic Dynamics and Control, Elsevier, vol. 33(10), pages 1739-1756, October.
  6. Kaneko, Mamoru & Mitra, Aniruddha, 2011. "Discrimination in festival games with limited observability and accessibility," Mathematical Social Sciences, Elsevier, vol. 62(1), pages 34-45, July.
  7. Kogure, Katsuo, 2013. "Impacts of Institutional Changes in Cambodia under the Pol Pot Regime," CEI Working Paper Series 2012-13, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.

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