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Inductive Game Theory: A Basic Scenario

  • Mamoru Kaneko

    ()

    (Institute of Policy and Planning Sciences, University of Tsukuba)

  • J. Jude Kline

    ()

    (Department of Economics, School of Business, Bond University)

The aim of this paper is to present the new theory called “inductive game theory”. A paper, published by one of the present authors with A. Matsui, discussed some part of inductive game theory in a specific game. Here, we will give a more developed discourse of the theory. The paper is written to show one entire picture of the theory: From individual raw experiences, short-term memories to long-term memories, inductive derivation of individual views, classification of such views, decision making or modification of behavior based on a view, and repercussion from the modified play in the objective game. We focus on some clear-cut cases, forgetting a lot of possible variants, but will still give a lot of results. In order to show one possible discourse as a whole, we will ask the question of how Nash equilibrium is emerging from the viewpoint of inductive game theory, and will give one answer.

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Paper provided by Institute of Economics, Academia Sinica, Taipei, Taiwan in its series IEAS Working Paper : academic research with number 06-A001.

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Length: 57 pages
Date of creation: Jan 2006
Date of revision:
Handle: RePEc:sin:wpaper:06-a001
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  1. Dubey, Pradeep & Kaneko, Mamoru, 1984. "Information patterns and Nash equilibria in extensive games: 1," Mathematical Social Sciences, Elsevier, vol. 8(2), pages 111-139, October.
  2. Fudenberg, D. & Levine, D.K., 1991. "Self-Confirming Equilibrium ," Working papers 581, Massachusetts Institute of Technology (MIT), Department of Economics.
  3. Nobu-Yuki Suzuki & Mamoru Kaneko, 2002. "Bounded interpersonal inferences and decision making," Economic Theory, Springer, vol. 19(1), pages 63-103.
  4. Harsanyi, John C., 1994. "Games with Incomplete Information," Nobel Prize in Economics documents 1994-1, Nobel Prize Committee.
  5. Kaneko, Mamoru & Matsui, Akihiko, 1999. " Inductive Game Theory: Discrimination and Prejudices," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 1(1), pages 101-37.
  6. Kalai, Ehud & Lehrer, Ehud, 1993. "Subjective Equilibrium in Repeated Games," Econometrica, Econometric Society, vol. 61(5), pages 1231-40, September.
  7. Itzhak Gilboa & David Schmeidler, 1995. "Case-Based Decision Theory," Post-Print hal-00753144, HAL.
  8. Mamoru Kaneko, 2002. "Epistemic logics and their game theoretic applications: Introduction," Economic Theory, Springer, vol. 19(1), pages 7-62.
  9. Brandenburger Adam & Dekel Eddie, 1993. "Hierarchies of Beliefs and Common Knowledge," Journal of Economic Theory, Elsevier, vol. 59(1), pages 189-198, February.
  10. Piccione, Michele & Rubinstein, Ariel, 1997. "On the Interpretation of Decision Problems with Imperfect Recall," Games and Economic Behavior, Elsevier, vol. 20(1), pages 3-24, July.
  11. Ritzberger, Klaus, 2002. "Foundations of Non-Cooperative Game Theory," OUP Catalogue, Oxford University Press, number 9780199247868, May.
  12. Jorgen W. Weibull, 1997. "Evolutionary Game Theory," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262731215, June.
  13. Martin J Osborne & Ariel Rubinstein, 2009. "A Course in Game Theory," Levine's Bibliography 814577000000000225, UCLA Department of Economics.
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