Flashcards in Game Theory Deck (5)
• A game is a formal representation of a situation in which a number of individuals interact in a setting of strategic interdependence
• Elements of a game
o Players: who are involved?
o Rules: who moves when? What do they know? What can they do?
o Outcomes: for each possible set of actions by the players, what is the outcome of the game?
o Payoffs: what are the players’ preferences over the possible outcomes?
o Games of Perfect and Imperfect Information
o Games of Perfect and Imperfect Information: Whether the player knows the actions previously taken by the opponent or not
o Games of Complete and Incomplete Information:
o Games of Complete and Incomplete Information: Whether the player has complete information about his/her opponent’s type or not.