Ex-post regret learning in games with fixed and random matching: The case of private values
In contexts in which players have no priors, we analyze a learning process based on ex-post regret as a guide to understand how to play games of incomplete information under private values. The conclusions depend on whether players interact within a fixed set (fixed matching) or they are randomly matched to play the game (random matching). The relevant long run predictions are minimal sets that are closed under “the same or better reply” operations. Under additional assumptions in each case, the prediction boils down to pure Nash equilibria, pure ex-post equilibria or pure minimax regret equilibria. These three paradigms exhibit nice robustness properties in the sense that they are independent of beliefs about the exogenous uncertainty of type spaces. The results are illustrated in second-price auctions, first-price auctions and Bertrand duopolies.
|Date of creation:||08 Jun 2010|
|Contact details of provider:|| Postal: Veláquez 76, 28001 Madrid|
Web page: http://www.cienciassociales.imdea.org/
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.:
- Young, H. Peyton, 2004. "Strategic Learning and its Limits," OUP Catalogue, Oxford University Press, number 9780199269181, December.
- Sergiu Hart, 2004.
Discussion Paper Series
dp372, The Federmann Center for the Study of Rationality, the Hebrew University, Jerusalem.
- Sergiu Hart, 2005. "Adaptive Heuristics," Econometrica, Econometric Society, vol. 73(5), pages 1401-1430, 09.
- Sergiu Hart, 2013. "Adaptive Heuristics," World Scientific Book Chapters, in: Simple Adaptive Strategies From Regret-Matching to Uncoupled Dynamics, chapter 11, pages 253-287 World Scientific Publishing Co. Pte. Ltd..
- Saran Rene & Serrano Roberto, 2010.
"Regret Matching with Finite Memory,"
033, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
- Rene Saran & Roberto Serrano, 2010. "Regret matching with finite memory," Working Papers 2010-10, Instituto Madrileño de Estudios Avanzados (IMDEA) Ciencias Sociales.
- Rene Saran & Roberto Serrano, 2010. "Regret Matching with Finite Memory," Levine's Working Paper Archive 661465000000000078, David K. Levine.
- Rene Saran & Roberto Serrano, 2010. "Regret Matching with Finite Memory," Working Papers 2010-10, Brown University, Department of Economics.
- Young, H Peyton, 1993. "The Evolution of Conventions," Econometrica, Econometric Society, vol. 61(1), pages 57-84, January.
- Dekel, Eddie & Fudenberg, Drew & Levine, David K., 2004.
"Learning to play Bayesian games,"
Games and Economic Behavior,
Elsevier, vol. 46(2), pages 282-303, February.
- Eddie Dekel & Drew Fudenberg & David K. Levine, 2000. "Learning to Play Bayesian Games," Discussion Papers 1322, Northwestern University, Center for Mathematical Studies in Economics and Management Science, revised Jul 2001.
- Eddie Dekel & Drew Fudenberg & David K Levine, 2002. "Learning to Play Bayesian Games," Levine's Working Paper Archive 625018000000000151, David K. Levine.
- Eddie Dekel & Drew Fudenberg & David K. Levine, 2001. "Learning to Play Bayesian Games," Harvard Institute of Economic Research Working Papers 1926, Harvard - Institute of Economic Research.
- Dekel, Eddie & Fudenberg, Drew & Levine, David, 2004. "Learning to Play Bayesian Games," Scholarly Articles 3200612, Harvard University Department of Economics.
- Shlomit Hon-Snir & Dov Monderer & Aner Sela, 1996.
"A Learning Approach to Auctions,"
Game Theory and Information
9610004, EconWPA, revised 07 Oct 1996.
- Rene Saran & Roberto Serrano, 2007.
"The Evolution of Bidding Behavior in Private-Values Auction and Double Auctions,"
2007-01, Brown University, Department of Economics.
- Rene Saran & Roberto Serrano, 2007. "The evolution of bidding behavior in private-values auctions and double auctions," Working Papers 2007-10, Instituto Madrileño de Estudios Avanzados (IMDEA) Ciencias Sociales.
- Ely, Jeffrey C. & Sandholm, William H., 2005. "Evolution in Bayesian games I: Theory," Games and Economic Behavior, Elsevier, vol. 53(1), pages 83-109, October.
- Spulber, Daniel F, 1995. "Bertrand Competition When Rivals' Costs Are Unknown," Journal of Industrial Economics, Wiley Blackwell, vol. 43(1), pages 1-11, March.
- Sergiu Hart & Andreu Mas-Colell, 2003. "Uncoupled Dynamics Do Not Lead to Nash Equilibrium," American Economic Review, American Economic Association, vol. 93(5), pages 1830-1836, December.
- Ritzberger, Klaus & Weibull, Jörgen W., 1993.
"Evolutionary Selection in Normal Form Games,"
Working Paper Series
383, Research Institute of Industrial Economics.
- Hans Jorgen Jacobsen & Mogens Jensen & Birgitte Sloth, 1997.
"The evolution of conventions under incomplete information,"
Economics Working Papers
475, Department of Economics and Business, Universitat Pompeu Fabra, revised Feb 2000.
- Mogens Jensen & Birgitte Sloth & Hans Whitta-Jacobsen, 2005. "The evolution of conventions under incomplete information," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 25(1), pages 171-185, 01.
- Hans Jorgen Jacobsen & Mogens Jensen & Birgitte Sloth, 2000. "The Evolution of Conventions under Incomplete Information," Econometric Society World Congress 2000 Contributed Papers 1340, Econometric Society.
- Mogens Jensen & Birgitte Sloth & Hans Jørgen Whitta-Jacobsen, "undated". "The Evolution of Conventions under Incomplete Information," Discussion Papers 03-12, University of Copenhagen. Department of Economics, revised Mar 2003.
- Roberto Serrano & Rene Saran, 2007. "The Evolution Of Bidding Behavior In Private-Values Auctions And Double Auctions," Working Papers wp2007_0712, CEMFI.
- Linhart, P. B. & Radner, R., 1989. "Minimax-regret strategies for bargaining over several variables," Journal of Economic Theory, Elsevier, vol. 48(1), pages 152-178, June.
- Drew Fudenberg & David K. Levine, 1996.
"The Theory of Learning in Games,"
Levine's Working Paper Archive
624, David K. Levine.
When requesting a correction, please mention this item's handle: RePEc:imd:wpaper:wp2010-11. 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: (IMDEA RePEc Maintainer)
If references are entirely missing, you can add them using this form.