Simple adaptive strategies: from regret-matching to uncoupled dynamics

This volume collects almost two decades of joint work of Sergiu Hart and Andreu Mas-Colell on game dynamics and equilibria. The starting point was the introduction of the adaptive strategy called regret-matching, which on the one hand is simple and natural, and on the other is shown to lead to correlated equilibria. This initial finding — boundedly rational behavior that yields fully rational outcomes in the long run — generated a large body of work on the dynamics of simple adaptive strategies. In particular, a natural condition on dynamics was identified: uncoupledness, whereby decision-makers do not know each other's payoffs and utilities (so, while chosen actions may be observable, the motivations are not). This condition turns out to severely limit the equilibria that can be reached. Interestingly, there are connections to the behavioral and neurobiological sciences and also to computer science and engineering (e.g.,via notions of “regret”). Simple Adaptive Strategies is self-contained and unified in its presentation. Together with the formal treatment of concepts, theorems, and proofs, significant space is devoted to informal explanations and illuminating examples. It may be used for advanced graduate courses — in game theory, economics, mathematics, computer science, engineering — and for furtherresearch. INDICE: Existence of Correlated Equilibria; A Simple Adaptive Procedure Leading to Correlated Equilibrium; A General Class of Adaptive Strategies; A Reinforcement Procedure Leading to Correlated Equilibrium; Regret-Based Continuous-Time Dynamics; General Procedures Leading to Correlated Equilibria; Uncoupled Dynamics Do Not Lead to Nash Equilibrium; Stochastic Uncoupled Dynamics and Nash Equilibrium; Uncoupled Automata and Pure Nash Equilibria; How Long to Equilibrium? The Communication Complexity of Uncoupled Equilibrium Procedures; Adaptive Heuristics; Nash Equilibrium and Dynamics.

• ISBN: 978-981-4390-69-9
• Editorial: World Scientific
• Encuadernacion: Cartoné
• Páginas: 320
• Fecha Publicación: 30/09/2012
• Nº Volúmenes: 1
• Idioma: Inglés