Induction and the Ramsey policy

Article Abstract:

The Ramsey policy as an optimal government policy in its interaction with the private sector is discussed in relation to the latter's rational choice of forecasting strategy. The policy is further the only optimal measure in instances where future payoffs are not discounted. When payoffs are discounted, the policy still remains optimal. This is the case even when the private sector incurs memory costs in the implementation of the forecasting strategy.

Research, Economic policy, Games of strategy (Mathematics)

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Perceptrons play the repeated prisoner's dilemma

Article Abstract:

A model of game theory is derived using perceptrons, which are networks of automata, to solve for bounded rationality under a situation characterized by repeated games. In the case of a prisoner's dilemma game, a folk theorem can be derived using only simple perceptrons as long as the outcome is Pareto-efficient. Nonetheless, an outcome that is highly complex does not need the same degree of complexity from perceptrons.

Game theory, Prisoner's dilemma game, Perceptrons

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Learning aspiration in repeated games

Article Abstract:

A study explaining the infinitely repeated symmetric 2x2 games played between rational agents, who follow a rule of thumb, is presented. In this case, an action is repeated when the payoff in the current situation is higher than the previous payoff.

United States, Analysis, Heuristic, Heuristics (Psychology), Games of chance (Mathematics)

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