Learning with Hazy Beliefs
Players are rational if they always choose best replies given their beliefs. They are good predictors if the difference between their beliefs and the distribution of the others' actual strategies goes to zero over time. Learning is deterministic if beliefs are fully determined by the initial conditions and the observed data. (Bayesian updating is a particular example). If players are rational, good predictors, and learn deterministically, there are many games for which neither beliefs nor actions converge to a Nash equilibrium. We introduce an alternative approach to learning called prospecting in which players are rational and good predictors, but beliefs have a small random component. In any finite game, and from any initial conditions, prospecting players learn to play arbitrarily close to Nash equilibrium with probability one.
|Date of creation:|
|Date of revision:|
|Contact details of provider:|| Web page: http://else.econ.ucl.ac.uk/|
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Nyarko, Yaw, 1994. "Bayesian Learning Leads to Correlated Equilibria in Normal Form Games," Economic Theory, Springer, vol. 4(6), pages 821-41, October.
- Foster, Dean P. & Vohra, Rakesh V., 1997. "Calibrated Learning and Correlated Equilibrium," Games and Economic Behavior, Elsevier, vol. 21(1-2), pages 40-55, October.
- Fudenberg Drew & Kreps David M., 1993.
"Learning Mixed Equilibria,"
Games and Economic Behavior,
Elsevier, vol. 5(3), pages 320-367, July.
- J. Jordan, 2010. "Three Problems in Learning Mixed-Strategy Equilibria," Levine's Working Paper Archive 475, David K. Levine.
When requesting a correction, please mention this item's handle: RePEc:els:esrcls:023. 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: (s. malkani)The email address of this maintainer does not seem to be valid anymore. Please ask s. malkani to update the entry or send us the correct address
If references are entirely missing, you can add them using this form.