New algorithm predicts future actions with unprecedented accuracy in dynamic models.
The article shows that in models where people have secret information and interact, they can predict what others expect. The researchers found a way to calculate these higher-order expectations in a specific type of model. By using a step-by-step method, they can figure out what everyone expects, even if it goes on forever. This method helps to predict how things will change over time accurately. The results apply to many situations as long as people care about the future and the outside factors follow certain patterns.