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Limits of correlation in repeated games with bounded memory

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  • Bavly, Gilad
  • Peretz, Ron

Abstract

We study repeated games in which each player i is restricted to (mixtures of) strategies that can recall up to ki stages of history. Characterizing the set of equilibrium payoffs boils down to identifying the individually rational level (“punishment level”) of each player.

Suggested Citation

  • Bavly, Gilad & Peretz, Ron, 2019. "Limits of correlation in repeated games with bounded memory," Games and Economic Behavior, Elsevier, vol. 115(C), pages 131-145.
  • Handle: RePEc:eee:gamebe:v:115:y:2019:i:c:p:131-145
    DOI: 10.1016/j.geb.2019.03.003
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    References listed on IDEAS

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    1. Abraham Neyman, 2008. "Learning Effectiveness and Memory Size," Discussion Paper Series dp476, The Federmann Center for the Study of Rationality, the Hebrew University, Jerusalem.
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    11. Jérôme Renault & Marco Scarsini & Tristan Tomala, 2007. "A Minority Game with Bounded Recall," Mathematics of Operations Research, INFORMS, vol. 32(4), pages 873-889, November.
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    Cited by:

    1. Halpern, Joseph Y. & Pass, Rafael & Seeman, Lior, 2019. "The truth behind the myth of the Folk theorem," Games and Economic Behavior, Elsevier, vol. 117(C), pages 479-498.

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    More about this item

    Keywords

    Repeated games; Bounded complexity; Equilibrium payoffs; Bounded recall; Finite automata; Concealed correlation;
    All these keywords.

    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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