This paper describes a line of research on learning by experience in repeated games and dynamic decision situations. The behavior is modelled as an unconsciously performed decision algorithm involving very little conscious deliberation. We consider three types of theoretical concepts

1) Learning Direction Theory
2) Impulse Equilibrium
3) Generalized Impulse Balance

A player i’s period payoff depends only on the period strategies π0 of a random player and the strategies π₁,…,π_n of n personal players, but not on t. At the beginning of each period t, a personal player i compares his payoff to the obtained one in period t-1 with the payoff y_i he could have maximally obtained in t-1 by other strategies ρ_i given the strategies actually used by the other players. A positive difference z_i=y_i-x_i indicates an impulse from π_i to ρ_i

Let h_i (π_i,π_-i) be player i’s period payoff if he plays π_i and where π_-i  stands for the combination of the period strategies of all other players. Then

(1) s_i=max(_πi∈Πi)  min(_π-i∈Π-i) h_i (π_i,π_-i )

is player i’s pure strategy maximum, also referred to as player i’s security level s_i

Π_i is the set of all possible π_i and Π_-i is the setoff all possible π_-i. Player i’s payoff cannot be reduced to a level below s_i by the behavior of the other player j even if they know which strategy π_i player i is going to play. Therefore s_i is a natural benchmark for the distinction between losses and gains. Any payoff x_i with x_i < s_i involves a loss l_i = s_i - x_i and x_i > s_i is connected to a given g_i = x_i – s_i. Define:

|μ-η|₊=max[μ-η,0]

|μ-η|_-=min[μ-η,0]

The success measure connected to the theories covered by the paper is the transformed payoff:

The strength of an impulse from π_n to ρ_i is measured by the difference of the transformed payoffs from π_i to ρ_i. In the context of the paper by Chmura and myself (2008) the concept of impulse balance was defined for 2x2 game only. In this case the difference z_i = y_i - x_i in terms of the untransformed payoff is always positive. However in the area of 3 players we cannot avoid a definition based on the transformed payoff.