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On the complexity of coordination

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  • GOSSNER, Olivier
  • HERNANDEZ, Pénélope

Abstract

Many results on repeated games played by finite automata rely on the complexity of the exact implementation of a coordinated play of length n. For a large proportion of sequences, this complexity appears to be no less than n. We study the complexity of a coordinated play when allowing for a few mismatches. We prove the existence of a constant C such that if (m log m /n) >= C, almost all sequences of length n can be predicted by an automaton of size m with a coordination rate close to 1. This contrasts with Neyman [6] that shows that when (m log m/n) is close to 0, almost no sequence can be predicted with a coordination ratio significantly larger than the minimal one.

Suggested Citation

  • GOSSNER, Olivier & HERNANDEZ, Pénélope, 2001. "On the complexity of coordination," LIDAM Discussion Papers CORE 2001047, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvco:2001047
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    References listed on IDEAS

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    1. Abraham Neyman, 1998. "Finitely Repeated Games with Finite Automata," Mathematics of Operations Research, INFORMS, vol. 23(3), pages 513-552, August.
    2. Kalai, Ehud & Stanford, William, 1988. "Finite Rationality and Interpersonal Complexity in Repeated Games," Econometrica, Econometric Society, vol. 56(2), pages 397-410, March.
    3. Abreu, Dilip & Rubinstein, Ariel, 1988. "The Structure of Nash Equilibrium in Repeated Games with Finite Automata," Econometrica, Econometric Society, vol. 56(6), pages 1259-1281, November.
    4. Ben-Porath Elchanan, 1993. "Repeated Games with Finite Automata," Journal of Economic Theory, Elsevier, vol. 59(1), pages 17-32, February.
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    Cited by:

    1. Marco Battaglini & Stephen Coate, 2008. "A Dynamic Theory of Public Spending, Taxation, and Debt," American Economic Review, American Economic Association, vol. 98(1), pages 201-236, March.
    2. Olivier Gossner & Penélope Hernández & Ron Peretz, 2016. "The complexity of interacting automata," International Journal of Game Theory, Springer;Game Theory Society, vol. 45(1), pages 461-496, March.
    3. Michele Piccione & Ariel Rubinstein, 2003. "Modeling the Economic Interaction of Agents With Diverse Abilities to Recognize Equilibrium Patterns," Journal of the European Economic Association, MIT Press, vol. 1(1), pages 212-223, March.
    4. repec:dau:papers:123456789/6127 is not listed on IDEAS
    5. Hernández, Penélope & Urbano, Amparo, 2008. "Codification schemes and finite automata," Mathematical Social Sciences, Elsevier, vol. 56(3), pages 395-409, November.
    6. Fernando Oliveira, 2010. "Bottom-up design of strategic options as finite automata," Computational Management Science, Springer, vol. 7(4), pages 355-375, October.
    7. Yair Goldberg, 2003. "On the Minmax of Repeated Games with Imperfect Monitoring: A Computational Example," Discussion Paper Series dp345, The Federmann Center for the Study of Rationality, the Hebrew University, Jerusalem.
    8. Olivier Gossner & Penélope Hernández, 2005. "Coordination Through De Bruijn Sequences," Working Papers. Serie AD 2005-05, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    9. Renault, Jérôme & Scarsini, Marco & Tomala, Tristan, 2008. "Playing off-line games with bounded rationality," Mathematical Social Sciences, Elsevier, vol. 56(2), pages 207-223, September.
    10. Olivier Gossner & Jöhannes Horner, 2006. "When is the individually rational payoff in a repeated game equal to the minmax payoff?," Discussion Papers 1440, Northwestern University, Center for Mathematical Studies in Economics and Management Science.

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