This paper explores the value of memory in decision making in dynamic environments. We examine the decision problem faced by an agent with bounded memory who receives a sequence of signals from a partially observable Markov decision process. We characterize environments in which the optimal...

A recent result in repeated incomplete information games is that after an arbitrarily long history, any equilibrium of the continuation game must be an equilibrium of the complete information game. This result implies that reputation is a short-run phenomenon. We study a particular class of...

In this paper I analyze a repeated coordination game between a bounded memory player and a fully rational player. A bounded memory player is a player who is subject to imperfect recall, but, conditional on this constraint, acts optimally every point in time given her beliefs over the actual...

We study learning with bounded memory in zero-sum repeated games with one-sided incomplete information. The uninformed player has only a fixed number of memory states available. His strategy is to choose a transition rule from state to state, and an action rule, which is a map from each memory...