Coevolution of finite automata with errors
Errors are common in strategic situations. We use a genetic algorithm to simulate the evolution of error-prone finite automata in the repeated Prisoner's Dilemma game. In particular, the automata are subjected to implementation and perception errors. The computational experiments assess whether and how the distribution of outcomes and structures in the population changes with different levels of errors. We find that the complexity of the automata is decreasing in the probability of errors. Furthermore, the prevailing structures tend to exhibit low reciprocal cooperation and low tolerance to defections as the probability of errors increases. In addition, by varying the error-level, the study identifies a threshold error-level. At and above the threshold error-level, the prevailing structures converge to the open-loop (history-independent) automaton Always-Defect. On the other hand, below the threshold, the prevailing structures are closed-loop (history-dependent) and diverse, which impedes any inferential projections on the superiority of a particular machine. Keywords; automata, repeated games, prisoner's dilemma, genetic algorithms, local polynomial regression
|Date of creation:||17 Jan 2013|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: (+44) 23 80592537
Fax: (+44) 23 80593858
Web page: http://www.economics.soton.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.:
- Ben-Shoham, Assaf & Serrano, Roberto & Volij, Oscar, 2004.
"The evolution of exchange,"
Journal of Economic Theory,
Elsevier, vol. 114(2), pages 310-328, February.
- Oscar Volij, 2000. "The Evolution of Exchange," Econometric Society World Congress 2000 Contributed Papers 0292, Econometric Society.
- Volij, Oscar & Ben-Shoham, Asaf & Serrano, Roberto, 2004. "The Evolution of Exchange," Staff General Research Papers 10247, Iowa State University, Department of Economics.
- Roberto Serrano & Assaf Ben-Shoham & Oscar Volij, 2000. "The Evolution of Exchange," Economic theory and game theory 012, Oscar Volij.
- Kandori, M. & Mailath, G.J., 1991.
"Learning, Mutation, And Long Run Equilibria In Games,"
71, Princeton, Woodrow Wilson School - John M. Olin Program.
- Kandori, Michihiro & Mailath, George J & Rob, Rafael, 1993. "Learning, Mutation, and Long Run Equilibria in Games," Econometrica, Econometric Society, vol. 61(1), pages 29-56, January.
- M. Kandori & G. Mailath & R. Rob, 1999. "Learning, Mutation and Long Run Equilibria in Games," Levine's Working Paper Archive 500, David K. Levine.
- Neyman, Abraham, 1985. "Bounded complexity justifies cooperation in the finitely repeated prisoners' dilemma," Economics Letters, Elsevier, vol. 19(3), pages 227-229.
- Jonathan Bendor & Roderick M. Kramer & Suzanne Stout, 1991. "When in Doubt..," Journal of Conflict Resolution, Peace Science Society (International), vol. 35(4), pages 691-719, December.
- BERGIN, James & LIPMAN, Bart, 1994.
"Evolution with State-Dependent Mutations,"
CORE Discussion Papers
1994055, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Fudenberg, Drew & Maskin, Eric, 1986. "The Folk Theorem in Repeated Games with Discounting or with Incomplete Information," Econometrica, Econometric Society, vol. 54(3), pages 533-54, May.
- 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.
- Selten,Reinhard & Mitzkewitz,Michael & Uhlich,Gerald, .
"Duopoly strategies programmed by experienced players,"
Discussion Paper Serie B
106, University of Bonn, Germany.
- Reinhard Selten & Michael Mitzkewitz & Gerald R. Uhlich, 1997. "Duopoly Strategies Programmed by Experienced Players," Econometrica, Econometric Society, vol. 65(3), pages 517-556, May.
- Heiner, Ronald A, 1983. "The Origin of Predictable Behavior," American Economic Review, American Economic Association, vol. 73(4), pages 560-95, September.
- Dawes, Robyn M & Thaler, Richard H, 1988. "Anomalies: Cooperation," Journal of Economic Perspectives, American Economic Association, vol. 2(3), pages 187-97, Summer.
- Miller, John H., 1996. "The coevolution of automata in the repeated Prisoner's Dilemma," Journal of Economic Behavior & Organization, Elsevier, vol. 29(1), pages 87-112, January.
- Banks, Jeffrey S. & Sundaram, Rangarajan K., 1990.
"Repeated games, finite automata, and complexity,"
Games and Economic Behavior,
Elsevier, vol. 2(2), pages 97-117, June.
- Binmore, Kenneth G. & Samuelson, Larry, 1992. "Evolutionary stability in repeated games played by finite automata," Journal of Economic Theory, Elsevier, vol. 57(2), pages 278-305, August.
- Marks, R E, 1992. "Breeding Hybrid Strategies: Optimal Behaviour for Oligopolists," Journal of Evolutionary Economics, Springer, vol. 2(1), pages 17-38, March.
- Fernando Vega-Redondo, 1997.
"The Evolution of Walrasian Behavior,"
Econometric Society, vol. 65(2), pages 375-384, March.
When requesting a correction, please mention this item's handle: RePEc:stn:sotoec:1019. 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: (Chris Thorn)
If references are entirely missing, you can add them using this form.