Codification schemes and finite automata

Abstract: This paper is a note on how Information Theory and Codification Theory are helpful in the computational design of both communication protocols and strategy sets in the framework of finitely repeated games played by bounded rational agents. More precisely, we show the usefulness of both theories to improve the existing automata bounds on the work of Neyman (1998) Finitely repeated games with finite automata, Mathematics of Operations Research, 23 (3), 513–552. [Copyright &y& Elsevier]