Neural networks and Markov models for the iterated prisoner´s dilemma

The study of strategic interaction among a society of agents is often handled using the machinery of game theory. This research examines how a Markov decision process (MDP) model may be applied to an important element of repeated game theory: the iterated prisoner´s dilemma. Our study uses a Markovian approach to the game to represent the problem of in a computer simulation environment. A pure Markov approach is used on a simplified version of the iterated game and then we formulate the general game as a partially observable Markov decision process (POMDP). Finally, we use a cellular structure as an environment for players to compete and adapt. We apply both a simple replacement strategy and a cellular neural network to the environment.