Stochastic uncoupled dynamics and nash equilibrium: extended abstract

  • Authors:
  • Sergiu Hart;Andreu Mas-Colell

  • Affiliations:
  • The Hebrew University of Jerusalem, Jerusalem, Israel;Universitat Pompeu Fabra, Barcelona, Spain

  • Venue:
  • TARK '05 Proceedings of the 10th conference on Theoretical aspects of rationality and knowledge
  • Year:
  • 2005

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Abstract

In this paper we consider dynamic processes, in repeated games, that are subject to the natural informational restriction of uncoupledness. We study the almost sure convergence to Nash equilibria, and present a number of possibility and impossibility results. Basically, we show that if in addition to random moves some recall is introduced, then successful search procedures that are uncoupled can be devised. In particular, to get almost sure convergence to pure Nash equilibria when these exist, it suffices to recall the last two periods of play.