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Strategy Learning in 3x3 Games by Neural Networks

Author

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  • D. Sgroi
  • D. J. Zizzo

Abstract

This paper presents a neural network based methodology for examining the learning of game-playing rules in never-before seen games. A network is trained to pick Nash equilibria in a set of games and then released to play a larger set of new games. While faultlessly selecting Nash equilibria in never-before seen games is too complex a task for the network, Nash equilibria are chosen approximately 60% of the times. Furthermore, despite training the network to select Nash equilibria, what emerges are endogenously obtained bounded-rational rules which are closer to payoff dominance, and the best response to payoff dominance.

Suggested Citation

  • D. Sgroi & D. J. Zizzo, 2002. "Strategy Learning in 3x3 Games by Neural Networks," Cambridge Working Papers in Economics 0207, Faculty of Economics, University of Cambridge.
  • Handle: RePEc:cam:camdae:0207
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    References listed on IDEAS

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    1. Stahl Dale O. & Wilson Paul W., 1995. "On Players' Models of Other Players: Theory and Experimental Evidence," Games and Economic Behavior, Elsevier, vol. 10(1), pages 218-254, July.
    2. Ben-porath, Elchanan, 1990. "The complexity of computing a best response automaton in repeated games with mixed strategies," Games and Economic Behavior, Elsevier, vol. 2(1), pages 1-12, March.
    3. Costa-Gomes, Miguel & Crawford, Vincent P & Broseta, Bruno, 2001. "Cognition and Behavior in Normal-Form Games: An Experimental Study," Econometrica, Econometric Society, vol. 69(5), pages 1193-1235, September.
    4. Stahl, Dale II & Wilson, Paul W., 1994. "Experimental evidence on players' models of other players," Journal of Economic Behavior & Organization, Elsevier, vol. 25(3), pages 309-327, December.
    5. Gilboa, Itzhak, 1988. "The complexity of computing best-response automata in repeated games," Journal of Economic Theory, Elsevier, vol. 45(2), pages 342-352, August.
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    Citations

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    Cited by:

    1. 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.
    2. Leonidas Spiliopoulos, 2005. "Can the human mind learn to backward induce? A neural network answer," Game Theory and Information 0505008, University Library of Munich, Germany.
    3. Spiliopoulos, Leonidas, 2009. "Neural networks as a learning paradigm for general normal form games," MPRA Paper 16765, University Library of Munich, Germany.
    4. Fabrizio Germano, 2007. "Stochastic Evolution of Rules for Playing Finite Normal Form Games," Theory and Decision, Springer, vol. 62(4), pages 311-333, May.

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    More about this item

    Keywords

    rationality; learning; neural networks; normal form games; complexity;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D00 - Microeconomics - - General - - - General
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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