Small and Partial Views derived from Limited Experiences
This paper develops a theory of inductive derivations of personal views from experiences focusing on limited trials and partial memories. The theory allows us to discuss how a player might simplify his view of a complicated situation. Two new concepts of marked information pieces and tested actions are introduced for this purpose. Each player accumulates local memories as long-term term memories up to marked pieces and tested actions, and constructs a view. At unmarked pieces, he behaves following his prescribed regular behavior pattern without thinking about it. A derived view is typically small, partial, and sometimes prejudiced relative to the original game situation. This paper studies the emergence of such views. One result is the characterization of a Nash equilibrium relative to the relevant domain of the objective game based on the limited and partial views of the individual players.
Mamoru Kaneko and Jeffrey J. Kline. 2007. "Small and Partial Views derived from Limited Experiences" Business papers
Available at: http://works.bepress.com/jeffrey_kline/8