Adaptation and Control in Competitive Games

Heinz Georg Schuster
Christian Albrechts Universität Kiel

We investigate adaptation and control in two competitve games: the iterated prisoners dilemma and the penny game.
By modeling players with adaptive Booleans we show that the players can influence each other due to the fact that the future reward of player one depends on the adaptive strategy of player two and vice versa. We show that with inceasing memory the players construct internal models of each other and that there exists a new possibility of dynamical control in which a player can "surf" the for him most profitable streamlines in strategy space. This dynamical "riding the tide type" of control is a generic feature of games with coupled rewards and has potential applications for systems of interacting agents in economy and biology.