Learning with bounded memory

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dc.contributor.author Roy, Jaideep
dc.contributor.editor Universidad Carlos III de Madrid. Departamento de Economía
dc.date.accessioned 2010-03-10T11:12:18Z
dc.date.available 2010-03-10T11:12:18Z
dc.date.issued 2000-10
dc.identifier.issn 2340-5031
dc.identifier.uri http://hdl.handle.net/10016/7224
dc.description.abstract The paper studies infinite repetition of finite strategic form games. Players use a learning behavior and face bounds on their cognitive capacities. We show that for any given beliefprobability over the set of possible outcomes where players have no experience. games can be payoff classified and there always exists a stationary state in the space of action profiles. In particular, if the belief-probability assumes all possible outcomes without experience to be equally likely, in one class of Prisoners' Dilemmas where the average defecting payoff is higher than the cooperative payoff and the average cooperative payoff is lower than the defecting payoff, play converges in the long run to the static Nash equilibrium while in the other class of Prisoners' Dilemmas where the reserve holds, play converges to cooperation. Results are applied to a large class of 2 x 2 games.
dc.format.mimetype application/pdf
dc.language.iso eng
dc.relation.ispartofseries UC3M Working papers. Economics
dc.relation.ispartofseries 2000-72-26
dc.rights Atribución-NoComercial-SinDerivadas 3.0 España
dc.rights.uri http://creativecommons.org/licenses/by-nc-nd/3.0/es/
dc.subject.other Cognitive complexity
dc.subject.other Bounded logistic quantal response learning
dc.subject.other Long run outcomes
dc.title Learning with bounded memory
dc.type workingPaper
dc.subject.eciencia Economía
dc.rights.accessRights openAccess
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