The bounded memory folk theorem

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Barlo, Mehmet and Carmona, Guilherme and Sabourian, Hamid (2011) The bounded memory folk theorem. [Working Paper / Technical Report] Sabanci University ID:SU_FASS_2011/0005

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Abstract

We show that the Folk Theorem holds for n-player discounted repeated games with bounded-memory pure strategies. Our result requires each player’s payoff to be strictly above the pure minmax payoff but requires neither time-dependent strategies, nor public randomization, nor communication. The type of strategies we employ to establish our result turn out to have new features that may be important in understanding repeated interactions.
Item Type: Working Paper / Technical Report
Uncontrolled Keywords: Repeated Games; Memory; Bounded Rationality; Folk Theorem
Subjects: H Social Sciences > HB Economic Theory > HB135-147 Mathematical economics. Quantitative methods
H Social Sciences > HB Economic Theory
Divisions: Faculty of Arts and Social Sciences > Academic programs > Economics
Faculty of Arts and Social Sciences
Depositing User: Mehmet Barlo
Date Deposited: 12 Oct 2011 14:01
Last Modified: 26 Apr 2022 10:49
URI: https://research.sabanciuniv.edu/id/eprint/17106

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