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Communication And Automata

Author

Listed:
  • Amparo Urbano

    (Universitat de València)

  • Penélope Hernández

    (Universidad de Alicante)

Abstract

The main contribution of this paper is to present a new procedure to reach cooperation through pseudorandom schemes in the finitely repeated Prisoner's Dilemma game, when strategies are implemented by automata. The equilibrium path consists of a communication process followed by a coordinated play. The choice of the set of communication messages is efficient since it is the minimum set with respect to the whole coordination procedure. This allows us to reach efficient outcomes with automata complexity lying between the ones already offered in the literature.

Suggested Citation

  • Amparo Urbano & Penélope Hernández, 2001. "Communication And Automata," Working Papers. Serie AD 2001-04, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    • Handle: RePEc:ivi:wpasad:2001-04
    as

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    File URL: http://www.ivie.es/downloads/docs/wpasad/wpasad-2001-04.pdf
    File Function: Fisrt version / Primera version, 2001
    Download Restriction: no
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    References listed on IDEAS

    as
    1. Neyman, Abraham, 1985. "Bounded complexity justifies cooperation in the finitely repeated prisoners' dilemma," Economics Letters, Elsevier, vol. 19(3), pages 227-229.
    2. Zemel, Eitan, 1989. "Small talk and cooperation: A note on bounded rationality," Journal of Economic Theory, Elsevier, vol. 49(1), pages 1-9, October.
    3. Rubinstein, Ariel, 1986. "Finite automata play the repeated prisoner's dilemma," Journal of Economic Theory, Elsevier, vol. 39(1), pages 83-96, June.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Olivier Gossner & Penélope Hernández, 2003. "On the Complexity of Coordination," Mathematics of Operations Research, INFORMS, vol. 28(1), pages 127-140, February.
    2. O. Gossner, 2000. "Sharing a long secret in a few public words," Thema Working Papers 2000-15, THEMA (Théorie Economique, Modélisation et Applications), CY Cergy-Paris University, ESSEC and CNRS.
    3. GOSSNER, Olivier, 1998. "Repeated games played by cryptographically sophisticated players," LIDAM Discussion Papers CORE 1998035, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).

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