Rage against the machines: How subjects play against learning algorithms

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Abstract

We use a large-scale internet experiment to explore how subjects learn to play against computers that are programmed to follow one of a number of standard learning algorithms. The learning theories are (unbeknown to subjects) a best response process, fictitious play, imitation, reinforcement learning, and a trial & error process. We explore how subjects' performances depend on their opponents' learning algorithm. Furthermore, we test whether subjects try to influence those algorithms to their advantage in a forward-looking way (strategic teaching). We find that strategic teaching occurs frequently and that all learning algorithms are subject to exploitation with the notable exception of imitation. © 2009 The Author(s).

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Duersch, P., Kolb, A., Oechssler, J., & Schipper, B. C. (2010). Rage against the machines: How subjects play against learning algorithms. Economic Theory, 43(3), 407–430. https://doi.org/10.1007/s00199-009-0446-0

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