Chaos in Learning a Simple Two Person Game
AbstractWe investigate the problem of learning to play a generalized rock-paper-scissors game. Each player attempts to improve her average score by adjusting the frequency of the three possible responses. For the zero-sum case the learning process displays Hamiltonian chaos. The learning trajectory can be simple or complex, depending on initial conditions. For the non-zero-sum case it shows chaotic transients. This is the first demonstration of chaotic behavior for learning in a basic two person game. As we argue here, chaos provides an important self-consistency condition for determining when adaptive players will learn to behave as though they were fully rational.
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Bibliographic InfoPaper provided by Santa Fe Institute in its series Working Papers with number 01-09-049.
Date of creation: Sep 2001
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Game theory; learning; Nash equilibrium; chaos; rationality; Hamiltonian dynamics;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2001-10-16 (All new papers)
- NEP-EVO-2001-10-16 (Evolutionary Economics)
- NEP-MIC-2001-10-16 (Microeconomics)
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