Week 1 Flashcards
What are the 3 ways interests can be between the players of a game?
- Completely conflicting
- Completely aligned
- When players can collude it’s a mix of both
What different order of moves can a game have?
- Sequential
- Simultaneous
- A mix of both
What are the 5 ways information can be held by players in a game
Imperfect
Perfect
Incomplete
Complete
Asymmetric
What is the difference between perfect and imperfect information
When there is perfect information, a player knows all the previous moves of all the players. When there is imperfect info some players do not know some of the previous moves of other players
What is incomplete information
Incomplete - some players do not know something (e.g. payoffs) about the game before it starts
Define asymmetric information
When some players know more than others.
Info can be asymmetric when info is incomplete or imperfect
What is strategic uncertainty and what kind of situations do you see it in?
Not knowing what others have chosen or will choose. Evident in situations with multiple equilibria or players are choosing mixed strategies
How often can games be played?
One shot
finitely repeated
infinitely repeated i.e. uncertain number of repetitions in a game - can be ended after any round
On a game tree what is a players strategy?
A complete plan of action for the entire game. Must indicate a move at every possible node.
Can be given to a friend to play on your behalf
What is backward induction?
When you begin at the end of the game (the last decision nodes) and reason backwards.
- Used in games with complete information
What is forward induction?
Begin at the start of the game and reason forwards.
What is the strategy found using backward induction called?
Subgame perfect Nash equilibrium, or rollback equilibrium
How do you work out the total number of strategies a player has on a game tree?
The number of pathways from 1 decision node, to the power of the total number of decision nodes.
What is a zero-sum game
When players have completely conflicting interest. Someone always wins and loses
