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A minority game with bounded recall

  • Renault, Jérôme
  • Scarsini, Marco
  • Tomala, Tristan

This paper studies a repeated minority game with public signals, symmetric bounded recall, and pure strategies. We investigate both public and private equilibria of the game with fixed recall size. We first show how public equilibria in such a repeated game can be represented as colored subgraphs of a de Bruijn graph. Then we prove that the set of public equilibrium payoffs with bounded recall converges to the set of uniform equilibrium payoffs as the size of the recall increases. We also show that private equilibria behave badly: A private equilibrium payoff with bounded recall need not be a uniform equilibrium payoff.

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File URL: http://basepub.dauphine.fr/xmlui/bitstream/123456789/6381/2/2006-42.pdf
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Paper provided by Paris Dauphine University in its series Economics Papers from University Paris Dauphine with number 123456789/6381.

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Date of creation: 2007
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Publication status: Published in Mathematics of Operations Research, 2007, Vol. 32, no. 4. pp. 873-889.Length: 16 pages
Handle: RePEc:dau:papers:123456789/6381
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  21. Sabourian, Hamid, 1998. "Repeated games with M-period bounded memory (pure strategies)," Journal of Mathematical Economics, Elsevier, vol. 30(1), pages 1-35, August.
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