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Using Simulated Annealing to Compute the Trembles of Trembling Hand Perfection
McDonald, Stuart (2002-08-01) Using Simulated Annealing to Compute the Trembles of Trembling Hand Perfection. Discussion Paper No. 316, School of Economics, The University of Queensland.
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| Attached Files |
| Name |
Description |
MIMEType |
Size |
Downloads |
econ_dp_316_02.pdf
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econ_dp_316_02.pdf |
application/pdf |
2.23MB |
88 |
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| Author(s) |
McDonald, Stuart
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| Title |
Using Simulated Annealing to Compute the Trembles of Trembling Hand Perfection
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| School, Department or Centre |
School of Economics
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| Institution |
The University of Queensland
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| Report Number |
Discussion Paper No. 316
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| Publication date |
2002-08-01
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| Subject |
230118 Optimisation
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| Abstract/Summary |
Simulated annealing is one of a family of Monte Carlo simulation methods that relies on a Markov chain to assure its convergence. This paper exploits an analogy between the
function of the "trembles" that underlie the function of simulated annealing and the player "trembles" that underlie the Nash refinement known as "trembling hand" perfection. This paper
shows that this relationship can be used to provide a method for comupting perfect and proper equilibria of fine n-player games.
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| Keyword(s) |
perfect equilibrium
proper equilibrium
computation of Nash refinements
Markov chain Monte Carlo
MCMC
simulated annealing
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