Repeated games with \(M\)-period bounded memory (pure strategies) (Q1300377)

The author formulates and establishes (i) sufficiency conditions for stationary equilibria, (ii) sufficiency conditions for nonstationary \(M\)-memory subgame perfect equilibrium (SPE), and (iii) necessary conditions for \(M\)-memory SPE. In other words, this paper provides a characterization for the set of \(M\)-period memory pure SPE strategies, when the set of actions is finite. The results indicate that the size of SPE set expands very fast as the memory increases, and expands slowly as the action spaces expands.