Term

Definition
same as a zerosum game, where players' interests are in complete conflict. 


Term

Definition
players face some limitation of information 


Term
incomplete/asymmetric information 

Definition
one player knows more than another does 


Term

Definition
strategy using signals wherein the player provides objective evidence or by actions that are credible proof of his information 


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Definition
strategy taken by the lessinformed party where the moreinformed player will have to take some action that credibly reveals his information 


Term

Definition
jointaction agreements are enforceable 


Term

Definition
enforcement not possible and individual participants must be allowed to act in their own interests 


Term

Definition
(all) choices available to the players 


Term

Definition
a payoff calculated probabilistically 


Term

Definition
players are perfect calculators and flawless followers of their best strategies 


Term

Definition
each playing is using the strategy that is the best response to the strategies of the other players 


Term

Definition
extensive form of a game, shows all he component parts of the game 


Term

Definition
single action taken by a player at a node 


Term

Definition
cutting branches when we are certain that an action in a sequential move game will not be chosen 


Term
rollback / backward inducion 

Definition
looking ahead and reasoning back to determine behavior in sequentialmove games 


Term

Definition
when all players choose their optimal strategies found by doing rollback analysis 


Term

Definition
comes from ability to commit oneself to an advantageous position and to force the other players to adapt to it 


Term

Definition
comes from the flexibility to adapt oneself to others' choices 


Term

Definition


Term

Definition
basic initially specified actions 


Term

Definition
list of strategies, one for each player, such that no player can get a better payoff by switching to some other strategy that no player can get a better payoff by switching to some other strategy that is available to her while all the other players adhere to the strategies specified for them in the list 


Term
cellbycell inspection / enumeration 

Definition
check every cell to see if the strategies that generate it satisfy the definition of a nash equilibrium 


Term

Definition
notion of what the others are choosing in simultaneous move games 


Term

Definition
game in which two people might not cooperate even if it is in both their best interests to do so 


Term

Definition
strategy chosen that is better than another strategy for one player, no matter how that player's opponents may play 


Term

Definition
locating all possible nash equilibria of a game 


Term

Definition
choose the strategy that minimizes the opponent's best response 


Term

Definition
where it is important for both that the two people achieve one of the equilibria, but which one is immaterial because the two yield equal payoffs 


Term

Definition
equilibrium more likely to be chosen by the players because it seems special, natural or relevant to them. 


Term

Definition
games that require getting the preferred equilibrium outcome only if each has enough certainty or assurance that the other is choosing the appropriate action 


Term

Definition
2 player coordination game where two Nash equilibria occur where both agree on one outcome, but each prefers their own outcome 


Term

Definition
2 player simultaneous zerosum game; A game where each player has two strategies, say Macho and Wimp, such that [1] both (Macho, Wimp) and (Wimp, Macho) are Nash equilibria, [2] of the two, each prefers the outcome where he plays Macho and the other plays Wimp, and [3] the outcome (Macho, Macho) is the worst for both. 


Term

Definition
when players have a wide range of possibilities of strategies available 


Term

Definition
the part of a multimove game that begins at a particular node of the original game; the game that begins at any node of the decision tree 


Term

Definition
set of imperfect information for the player, as she can't distinguish between the nodes in the set given her available information 


Term

Definition
only plan of action starting at a node is part of the full strategy pertaining to that subgame 


Term
subgameperfect equilibrium (SPE) 

Definition
set of strategies, one per player, such that at every node of tree (whether or not the node lies along equilibrium) the continuation of the same strategy in the subgame is optimal for the player who moves there; equilibrium found by applying rollback to the extensive form game/decision tree 


Term

Definition
1) simultaneous or sequential 2) pure conflict or alignment of interests 3) one time or iterated 4) limited and asymmetric information or not 5) fixed or manipulable rules 6) cooperative or noncooperative 


Term

Definition
simplest, as each player makes only one move 


Term
criticisms of rollback theory 

Definition
1) too simplistic to do justice to complex trees 2) rollback not really observed in simple games 


Term

Definition
when successive (iterated) elimination of dominated strategies leads to a unique outcome 


Term

Definition
focal point (convergence of expectations, requires common knowledge of choices and communication) 


Term

Definition
best response of firm 2 to q1 


Term

Definition
competition is incredibly intense even though there are only 2 firms 


Term
Nash Eq 3 conceptual merits 

Definition
1) fits naturally with individual, noncoop games 2) fits with equilibrium concept 3) reasonable  other proposed solution would have worse problem 


Term

Definition
1) games can have many or no Nash Eq 2) ignores large risks from uncertainty 


Term
Dominance in sequential move 

Definition
dominance important for later mover in sequential game 


Term

Definition
A game where each player chooses and implements his action individually, without any jointaction agreements directly enforced by other players 


Term

Definition
an interaction where both players are aware of the crosseffect of actions taken 


Term

Definition
action situations where each person can choose without concern for reaction or response from others 


Term

Definition
choices available to players (complete plan of action) 


Term

Definition
single action taken by a player at a node 


Term

Definition
a strategy is credible if its continuation at all nodes, on or off the equilibrium path, is optimal for the subgame that starts at that node 

