Machine games: theory and experimental evidence
摘要
We propose an equilibrium model of behavior with Moore machines. The machines are subjected to some small likelihood of committing implementation errors. We analyze the machine game, where each player chooses in the beginning and commits thereafter to a machine to play an infinitely-repeated game. A pair of machines induces a sequence of action profiles, which are modelled by a Markov process. We derive predictions on a set of 2