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Strategic Cost and ‘Matching Pennies’

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  • Justin Smith
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    Abstract

    Evidence supports the contention that humans find it costly to carry out some sorts of strategies. Such costs are unlikely to be observed directly, but various models have been proposed to represent them. We discuss a method for testing the empirical worth of these models.

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    Bibliographic Info

    Paper provided by Santa Fe Institute in its series Working Papers with number 99-07-048.

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    Date of creation: Jul 1999
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    Handle: RePEc:wop:safiwp:99-07-048

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    Related research

    Keywords: Strategic cost; mixed strategies; strategic complexity;

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    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.:
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    1. Ariel Rubinstein, 1997. "Finite automata play the repeated prisioners dilemma," Levine's Working Paper Archive 1639, David K. Levine.
    2. Aumann, Robert J. & Sorin, Sylvain, 1989. "Cooperation and bounded recall," Games and Economic Behavior, Elsevier, vol. 1(1), pages 5-39, March.
    3. Bacharach, M. & Shin, H.S. & Williams, M., 1992. "Sophisticated Bounded Agents Play the Repeated Dilemma," Economics Series Working Papers 99143, University of Oxford, Department of Economics.
    4. Abreu, Dilip & Rubinstein, Ariel, 1988. "The Structure of Nash Equilibrium in Repeated Games with Finite Automata," Econometrica, Econometric Society, vol. 56(6), pages 1259-81, November.
    5. 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.
    6. Neyman, Abraham, 1985. "Bounded complexity justifies cooperation in the finitely repeated prisoners' dilemma," Economics Letters, Elsevier, vol. 19(3), pages 227-229.
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