Working papers // Department of Economics, Rutgers, the State University of New Jersey 2005,14
This paper initiates the study of long term interactions where players' bounded rationality varies over time. Time dependent bounded rationality is reflected in part in the number $\psi(t)$ of distinct strategies in the first $t$-stages. We examine how the growth rate of $\psi_i(t)$ affects equilibrium outcomes of repeated games, and, as a special case, we study the repeated games with nonstationary bounded recall.
Bounded Rationality Strategy Set Growth Strategic Complexity Nonstationary Bounded Recall Repeated Games Entropy