Algorithmic rationality: adding cost of computation to game theory

  • Authors:
  • Joseph Y. Halpern;Rafael Pass

  • Affiliations:
  • Cornell University;Cornell University

  • Venue:
  • ACM SIGecom Exchanges
  • Year:
  • 2011

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Abstract

We summarize our work on a general game-theoretic framework for reasoning about strategic agents performing possibly costly computation. In this framework, many traditional game-theoretic results (such as the existence of a Nash equilibrium) no longer hold. Nevertheless, we can use the framework to provide psychologically appealing explanations to observed behavior in well-studied games (such as finitely repeated prisoner's dilemma and rock-paper-scissors).