The tracing procedure: A self-correcting reasoning procedure (Q1089272): Difference between revisions

The tracing procedure is meant to model convergence of the player's expectations in a finite n-person noncooperative game. At every stage, each player's strategy plan will be always a best reply to his expectation (his subjective probability distribution) concerning the other player's strategies. At first, each player's strategy plan may be quite different from what the other players expect him to do. But then the tracing procedure gradually and systematically modifies the players' expectations, bringing them closer to everybody's actual strategy plan, so that in the end, both the players' expectations and their strategy plans will always converge to the same Nash equilibrium of the game. Of course, the specific equilibrium chosen by the tracing procedure will depend on what the players' initial expectations are assumed to be.