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Rage Against the Machines: How Subjects Learn to Play Against Computers

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Author Info
Peter Dürsch (Department of Economics, University of Heidelberg, Grabengasse 14, 69117 Heidelberg, Germany)
Albert Kolb (Department of Economics, University of Bonn)
Jörg Oechssler (Department of Economics, University of Heidelberg, Grabengasse 14, 69117 Heidelberg, Germany. oechssler@uni-hd.de)
Burkhard C. Schipper (Department of Economics, University of California, Davis, One Shields Avenue, Davis, CA 95616, USA)

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Abstract

We use an experiment to explore how subjects learn to play against computers which are programmed to follow one of a number of standard learning algorithms. The learning theories are (unbeknown to subjects) a best response process, fictitious play, imitation, reinforcement learning, and a trial & error process. We test whether subjects try to influence those algorithms to their advantage in a forward-looking way (strategic teaching). We find that strategic teaching occurs frequently and that all learning algorithms are subject to exploitation with the notable exception of imitation. The experiment was conducted, both, on the internet and in the usual laboratory setting. We find some systematic differences, which however can be traced to the different incentives structures rather than the experimental environment.

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Publisher Info
Paper provided by SFB/TR 15 Governance and the Efficiency of Economic Systems, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich in its series Discussion Papers with number 63.

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Date of creation: Oct 2005
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Handle: RePEc:trf:wpaper:63

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Related research
Keywords: learning; fictitious play; imitation; reinforcement; trial & error; strategic teaching; Cournot duopoly; experiments; internet;

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Find related papers by JEL classification:
C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection
L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

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    Other versions:
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Cited by:
(explanations, 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.)

  1. Spiliopoulos, Leonidas, 2008. "Humans versus computer algorithms in repeated mixed strategy games," MPRA Paper 6672, University Library of Munich, Germany. [Downloadable!]
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