We develop a general game-theoretic framework for reasoning about strategic agents performing possibly costly computation. In this framework, many traditional game-theoretic results (such as the existence of a Nash equilibrium) no longer hold. Nevertheless, we can use the framework to provide psychologically appealing explanations to observed behavior in wellstudied games (such as finitely repe...

The information carried by a signal unavoidably decays when the signal is corrupted by random noise. This occurs when a noisy channel transmits a message as well as when a noisy component performs computation. We first study this signal decay in the context of communication and obtain a tight bound on the decay of the information carried by a signal as it crosses a noisy channel. We then use th...