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This paper studies how external incentives can help agents to coordinate in summary-statistic games. Agents follow a myopic best-reply rule and face a trade-off between efficiency and strategic uncertainty. A principal can help agents to coordinate on the Pareto optimal equilibrium by monitoring...
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's unobservable state of mind. Using Markov decision processes, we investigate optimal decision rules and their performance in … optimal behavior through commitment-like decision rules by which players are committed to selecting the same action regardless … of their opponent's behavior. These commitment-like decision rules can enhance or reduce cooperation depending on the …
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Markov decision processes (MDPs) provide a powerful framework for analyzing dynamic decision making. However, their …
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