Topic 1

Question 1

Difference between simultaneous and sequential games

Answer 1

Simultaneous - players take decisions at same time - a the moment of decision player does not know what the others have done
Sequential - players take actions at different stages, it is not necessarily the case that a player will know what the other has done

Question 2

Difference between conflict and common interest

Answer 2

Conflict- what is good for one player will hurt the other

Common interest - players action is beneficial to himself and others players as well

Question 3

What is the difference between perfect or imperfect information

Answer 3

Perfect information- all players know what the others are doing
Imperfect information- don’t know what is going on

Question 4

What is the difference between complete and incomplete information ?

Answer 4

Complete information- players know what the other players like
Incomplete information- players may not know what the other players like, or even what the other player is capable of doing- also referred to as a game of asymmetric information

Question 5

What is the difference between perfect information and complete information ?

Answer 5

Perfect information- actual actions are observed (simultaneous games do not have perfect information)
Complete information- know all the different things they could possibly do (and know some preferences) - knowledge of pay offs and preferences (including strategy)