2. The Nature of the Game Flashcards
What is pure strategy?
Deterministic strategy, without randomness
What is deterrence?
The availability of strategies which may or should never be used or can’t be used which deter certain actions from the opponent
What is a mixed strategy?
A strategy that includes randomness
What is the nature of a payoff?
It reflects how much a given player likes the outcome of the game, in terms of what they care about only
Can payoffs be directly compared?
No
Is fairness an element of a payoff?
Only for those who care about it
What is an ordinal payoff?
The payoff scale is only a ranking of the payoffs
What is a finite game?
Finite number of moves, finite number of choices per move, finite number of players, and only ordinal payoffs matter
What are cardinal payoffs?
Payoff scales that measure how much a player prefers one option to another
What role does risk aversion play?
It can be incorporated into payoffs for players that care about it
What is common knowledge?
All players know about the game and about others’ knowledge of the game
