Re:Complexity Theory, Game Theory, and Economics
by bluetwo on Wednesday January 03, 2018 @02:15PM
(#16064073)
Sure, but the ability to punish doesn't exist in the formula.
Re:Complexity Theory, Game Theory, and Economics
by qubex on Wednesday January 03, 2018 @02:30PM
(#16064224)
The point is that if your strategy becomes a known quantity, it can be strictly dominated by your opponent choosing the strategy that wins against it. This would push you both back towards random choice (whether iterated or one-off).
Re:Complexity Theory, Game Theory, and Economics
by vilhelm_s on Wednesday January 03, 2018 @02:22PM
(#16064155)
A Nash equilibrium says that each player plays optimally given what all the other players do. If one player plays deterministically, it's no longer optimal for the other one to play randomly, so it's not an equilibrium.
But note the relationship between computation and exploitation here: if the deviating player makes its deviation difficult to detect (e.g. using a PRNG stream cipher, which is completely deterministic but may look random), then the cost of making good predictions to take advantage of the deviation may exceed the payoff.