Search results for " repeated games"

showing 2 items of 2 documents

Codification schemes and finite automata

2000

This paper is a note on how Information Theory and Codification Theory are helpful in the computational design both of communication protocols and strategy sets in the framework of finitely repeated games played by boundedly rational agents. More precisely, we show the usefulness of both theories to improve the existing automata bounds of Neyman¿s (1998) work on finitely repeated games played by finite automata.

Complexity codification repeated games finite automataTheoretical computer scienceFinite-state machineSociology and Political Sciencejel:C72jel:C73ComputingMilieux_PERSONALCOMPUTINGGeneral Social SciencesRational agentInformation theoryAutomatonRepeated gameAutomata theoryQuantum finite automataStatistics Probability and UncertaintyCommunications protocolGeneral PsychologyMathematicsMathematical Social Sciences
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Bounded Computational Capacity Equilibrium

2010

We study repeated games played by players with bounded computational power, where, in contrast to Abreu and Rubisntein (1988), the memory is costly. We prove a folk theorem: the limit set of equilibrium payoffs in mixed strategies, as the cost of memory goes to 0, includes the set of feasible and individually rational payoffs. This result stands in sharp contrast to Abreu and Rubisntein (1988), who proved that when memory is free, the set of equilibrium payoffs in repeated games played by players with bounded computational power is a strict subset of the set of feasible and individually rational payoffs. Our result emphasizes the role of memory cost and of mixing when players have bounded c…

TheoryofComputation_MISCELLANEOUSEconomics and EconometricsComputer Science::Computer Science and Game TheoryBounded rationality automata complexity infnitely repeated games equilibrium.EconomiaOutcome (game theory)Set (abstract data type)Lexicographic preferences0502 economics and businessFOS: MathematicsFolk theoremMathematics - Optimization and ControlMathematicsFinite-state machine05 social sciencesProbability (math.PR)ComputingMilieux_PERSONALCOMPUTING050301 educationTheoryofComputation_GENERALBounded rationalityOptimization and Control (math.OC)Bounded functionRepeated game050206 economic theory0503 educationMathematical economicsMathematics - Probability
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