Strategic entropy and complexity in repeated games

We introduce the entropy-based measure of uncertainty for mixed strategies of repeated games-strategic entropy. We investigate the asymptotic behavior of the maxmin values of repeated two-person zero-sum games with a bound on the strategic entropy of player 1's strategies while player 2 is unrestric ted, as the bound grows to infinity. We apply the results thus obtained to study the asymptotic behavior of the value of the repeated games with finit e automata and bounded recall. Journal of Economic Literature Classificatio n Numbers: C73, C72. (C) 1999 Academic Press.