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We adapt the method used by Jaynes to derive the equilibria of statistical physics to instead derive equilibria of bounded rational game theory. We analyze the dependence of these equilibria on the parameters of the underlying game, focusing on hysteresis effects. In particular, we show that by gradually imposing individual-specific tax rates on the players of the game, and then gradually removing those taxes, the players move from a poor equilibrium to one that is better for all of them.
In some games, additional information hurts a player, e.g., in games with first-mover advantage, the second-mover is hurt by seeing the first-movers move. What properties of a game determine whether it has such negative value of information for a par
We analyze in this paper finite horizon hierarchical signaling games between (information provider) senders and (decision maker) receivers in a dynamic environment. The underlying information evolves in time while sender and receiver interact repeate
Decentralized online learning for seeking generalized Nash equilibrium (GNE) of noncooperative games in dynamic environments is studied in this paper. Each player aims at selfishly minimizing its own time-varying cost function subject to time-varying
In this paper we introduce a novel flow representation for finite games in strategic form. This representation allows us to develop a canonical direct sum decomposition of an arbitrary game into three components, which we refer to as the potential, h
Extensive-form games constitute the standard representation scheme for games with a temporal component. But do all extensive-form games correspond to protocols that we can implement in the real world? We often rule out games with imperfect recall, wh