IDEAS home Printed from https://ideas.repec.org/a/spr/joecth/v4y1994i6p935-57.html
   My bibliography  Save this article

Bounded Rationality, Neural Network and Folk Theorem in Repeated Games with Discounting

Author

Listed:
  • Cho, In-Koo

Abstract

The perfect folk theorem (Fudenberg and Maskin, 1986) need not rely on excessively complex strategies. We recover the perfect folk theorem for two person repeated games with discounting through neural networks (Hopfield, 1982) that have finitely many associative units. For any individually rational payoff vector, we need neural networks with at most seven associative units, each of which can handle only elementary calculations such as maximum, minimum or threshold operation. The uniform upper bound of the complexity of equilibrium strategies differentiates this paper from Ben-Porath and Peleg (1987) in which we need to admit ever more complex strategies in order to expand the set of equilibrium outcomes.

Suggested Citation

  • Cho, In-Koo, 1994. "Bounded Rationality, Neural Network and Folk Theorem in Repeated Games with Discounting," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 4(6), pages 935-957, October.
    • Handle: RePEc:spr:joecth:v:4:y:1994:i:6:p:935-57
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Barlo, Mehmet & Carmona, Guilherme & Sabourian, Hamid, 2016. "Bounded memory Folk Theorem," Journal of Economic Theory, Elsevier, vol. 163(C), pages 728-774.
    2. Barlo, Mehmet & Carmona, Guilherme & Sabourian, Hamid, 2009. "Repeated games with one-memory," Journal of Economic Theory, Elsevier, vol. 144(1), pages 312-336, January.
    3. Barr, Jason & Saraceno, Francesco, 2009. "Organization, learning and cooperation," Journal of Economic Behavior & Organization, Elsevier, vol. 70(1-2), pages 39-53, May.
    4. repec:spo:wpecon:info:hdl:2441/9832 is not listed on IDEAS
    5. Horaguchi, Haruo, 1996. "The role of information processing cost as the foundation of bounded rationality in game theory," Economics Letters, Elsevier, vol. 51(3), pages 287-294, June.
    6. Barr, Jason & Saraceno, Francesco, 2002. "A computational theory of the firm," Journal of Economic Behavior & Organization, Elsevier, vol. 49(3), pages 345-361, November.
    7. Sgroi, Daniel & Zizzo, Daniel John, 2009. "Learning to play 3×3 games: Neural networks as bounded-rational players," Journal of Economic Behavior & Organization, Elsevier, vol. 69(1), pages 27-38, January.
    8. Sent, Esther-Mirjam, 2004. "The legacy of Herbert Simon in game theory," Journal of Economic Behavior & Organization, Elsevier, vol. 53(3), pages 303-317, March.
    9. repec:spo:wpecon:info:hdl:2441/6782 is not listed on IDEAS

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:joecth:v:4:y:1994:i:6:p:935-57. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla) or (Rebekah McClure). General contact details of provider: http://www.springer.com .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.