Adaptive Heuristics

Authors: 
Sergiu Hart
Abstract: 

We exhibit a large class of simple rules of behavior, which we call adaptive heuristics, and show that they generate rational behavior in the long run. These adaptive heuristics are based on natural regret measures, and may be viewed as a bridge between rational and behavioral viewpoints. The results presented here, taken together, establish a solid connection between the dynamic approach of adaptive heuristics and the static approach of correlated equilibria.

Date: 
September, 2004
Published in: 
Econometrica 73 (2005), 1401-1430
Number: 
372