Online Concealed Correlation by Boundedly Rational Players
In a repeated game with perfect monitoring, correlation among a group of players may evolve in the common course of play (online correlation). Such a correlation may be concealed from a boundedly rational player. The feasibility of such “online concealed correlation” is quantified by the individually rational payoff of the boundedly rational player. We show that “strong” players, i.e., players whose strategic complexity is less stringently bounded, can orchestrate online correlation of the actions of “weak” players, in a manner that is concealed from an opponent of “intermediate” strength. The result is illustrated in two models, each captures another aspect of bounded rationality. In the first, players use bounded recall strategies. In the second, players use strategies that are implementable by finite automata.
|Date of creation:||Sep 2003|
|Contact details of provider:|| Postal: Feldman Building - Givat Ram - 91904 Jerusalem|
Web page: http://www.ratio.huji.ac.il/
More information through EDIRC
References listed on IDEAS
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.:
- Neyman, Abraham, 1985. "Bounded complexity justifies cooperation in the finitely repeated prisoners' dilemma," Economics Letters, Elsevier, vol. 19(3), pages 227-229.
- GOSSNER, Olivier & TOMALA, Tristan, 2003. "Entropy and codification in repeated games with imperfect monitoring," CORE Discussion Papers 2003033, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Itzhak Gilboa & David Schmeidler, 1989.
"Infinite Histories and Steady Orbits in Repeated Games,"
846, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Gilboa Itzhak & Schmeidler David, 1994. "Infinite Histories and Steady Orbits in Repeated Games," Games and Economic Behavior, Elsevier, vol. 6(3), pages 370-399, May.
- Itzhak Gilboa & David Schmeidler, 1994. "Infinite Histories and Steady Orbits in Repeated Games," Post-Print hal-00481357, HAL.
- Ben-Porath Elchanan, 1993.
"Repeated Games with Finite Automata,"
Journal of Economic Theory,
Elsevier, vol. 59(1), pages 17-32, February.
- Lehrer, Ehud, 1988. "Repeated games with stationary bounded recall strategies," Journal of Economic Theory, Elsevier, vol. 46(1), pages 130-144, October.
- Rubinstein, Ariel, 1986.
"Finite automata play the repeated prisoner's dilemma,"
Journal of Economic Theory,
Elsevier, vol. 39(1), pages 83-96, June.
- Ariel Rubinstein, 1997. "Finite automata play the repeated prisioners dilemma," Levine's Working Paper Archive 1639, David K. Levine.
- repec:dau:papers:123456789/6885 is not listed on IDEAS
- Olivier Gossner & Penelope Hernandez & Abraham Neyman, 2003. "Online Matching Pennies," Discussion Paper Series dp316, The Federmann Center for the Study of Rationality, the Hebrew University, Jerusalem.
- O. Gossner, 1999.
"Repeated games played by cryptographically sophisticated players,"
THEMA Working Papers
99-07, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
- GOSSNER, Olivier, 1998. "Repeated games played by cryptographically sophisticated players," CORE Discussion Papers 1998035, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Gossner, O., 1999. "Repeated Games played by Cryptographically Sophesticated Players," Papers 99-07, Paris X - Nanterre, U.F.R. de Sc. Ec. Gest. Maths Infor..
- Ehud Kalai, 1987. "Bounded Rationality and Strategic Complexity in Repeated Games," Discussion Papers 783, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
When requesting a correction, please mention this item's handle: RePEc:huj:dispap:dp336. 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: (Tomer Siedner)
If references are entirely missing, you can add them using this form.