Ch 2 Vocab Flashcards
If some aspects of a game are known to some players but are not common knowledge among all players
Asymmetric Information
Sum of all players’ payoffs is a constant, the same for all their strategy combinations. Conflict of interest between players, some get a higher payoff, therefore the others collectively have a lower payoff.
Constant-Sum Game
Players decide to implement their strategy choices jointly, directly and collectively enforced.
Cooperative Game
Configuration of strategies where each player’s strategy is his best response to the strategies of all the other players
Equilibrium
Strategy of each player in a population is fixed genetically, and strategies that yield higher payoffs in random matches with others from same population reproduce faster than those with lower payoffs
Evolutionary Game
The probability-weighted average of the payoffs of one player in a game, corresponding to all possible realizations of a random choice of nature or mixed strategies of the players
Expected Payoff
A player’s uncertainty about external circumstances such as the weather or product quality
External Uncertainty
An action situation where there are two or more mutually aware players, and the outcome for each depends on the actions of all
Game (game of strategy)
If each player knows the full history of the game up to that point, including the results of any random actions of other players, including pure actions as well as the actual outcomes of any mixed strategies they may play. If not true, then it is said to have…
Imperfect Information
The objective, usually numerical, that a player in a game aims to maximize
Payoff
If players face neither strategic nor external uncertainty
Perfect Information
Perfectly calculating pursuit of a complete and internally consistent payoff function
Rational Behavior
Strategy of a less-informed player to elicit information credibly from a more-informed player
Screening
Methods used for screening
Screening Devices
A game that specifies a strict order, such that at each action node only one player takes an action, with knowledge of the actions taken at previous nodes
Sequential Moves
Devices used for signaling
Signals
Strategy of a more-informed player to convey his “good” information credibly to a less-informed player
Signaling
Each player must take his action without knowledge of the choices of others, move at the same time
Simultaneous Moves
A player’s uncertainty about an opponent’s moves made in the past or made at the same time as her own
Strategic Uncertainty
A complete plan of action for a player in a game, specifying the action he would take at all nodes where it is his turn to act according to the rules of the game. If two or more nodes are grouped into one information set, then the specified action must be the same at all these nodes
Strategy
Sum of all players equals zero for every configuration of their strategy choices. (Special case of a constant-sum game)
Zero-Sum Game
