Static games: players do not know their rivals’ choices.
Dynamic games: Sequential games, Multi-stage games
Sequential games: players take turns and know what others did before
Multi-stage games: a finite sequence of static games played by the same players
repeated games: same static game is played repeatedly at every stage
strictly competitive games: (constant-sum games)In maximizing her own payoff, a player automatically minimizes
her opponent’s payoff.
Cooperative games: games in which joint-action agreements
(to cooperate) are enforceable by outside parties.
Noncooperative games: games in which joint-action
agreements are not enforceable, individual participants are
allowed to act in their own interests.
common knowledge: players knows, players knows other players knows, players knows players knows other players knows…
complete information: possible actions, outcomes, how actions affect outcome, peferences are common knowledge
incomplete information: any of possible actions, outcomes, how actions affect outcome, peferences is not common knowledge
perfect information: Games have neither
exogenous nor endogenous uncertainty.
Exogenous uncertainty (or external uncertainty): A player
is uncertain about some external circumstances.
Endogenous uncertainty (or strategic uncertainty): A
player is uncertain about exactly what moves the other player
has made in the pas
past or is making at the same time he makes
his own move.
imperfect information: Games have either
exogenous nor endogenous uncertainty.
Normal form: a matrix
Extensive form: a tree
Players: decision makers The group of decision-makers that strategically interacts. notated by N>=2
complete contingent plan
of action.
E.g. “If player 2 does A, then I will do X; if player 2 does B,
then I will do Y.”