Abstract
We explore the inductively derived views obtained by players with partial temporal (short-term) memories. A player derives his personal view of the objective game situation from his accumulated (long-term) memories, and then uses it for decision making. A salient feature that distinguishes this paper from others on inductive game theory is partiality of a memory function of a player. This creates a multiplicity of possibly derived views. Although this is a difficulty for a player in various senses, it is an essential problem of induction. Faced with multiple possible views, a player may try to resolve this using further experiences. The two-way interaction between behavior and personal views is another distinguishing feature of the present paper.
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The authors thank Tai-Wei Hu and the referee for helpful comments on an earlier version of this paper.
The authors are partially supported by Grant-in-Aids for Scientific Research No.21243016, Japanese Society for the Promortion of Science, and Australian Research Council Discovery Grant DP0560034.
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Kaneko, M., Kline, J.J. Partial memories, inductively derived views, and their interactions with behavior. Econ Theory 53, 27–59 (2013). https://doi.org/10.1007/s00199-010-0519-0
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DOI: https://doi.org/10.1007/s00199-010-0519-0