Backward induction is a method used to solve multi-stage decision problems by starting at the final stage and working backwards to the first stage, ensuring optimal decision making at each step.
Bargaining is the process of negotiating the terms of a trade, significant in both formal and informal settings. It involves strategic discussions aimed at reaching a mutually agreeable outcome and is central to economic theories and political processes.
A two-player game that illustrates the gains that can be obtained from coordination and the difficulties of achieving coordination. Typically, it involves a scenario where two players must choose between two options with different preferences but a mutual desire to coordinate.
An overview of Bertrand competition, its historical context, types, key events, mathematical models, importance, applicability, and more.
An in-depth look at bluffing, a common strategic deception used in poker and other contexts.
An in-depth analysis of the Chicken Game, a two-player game in Game Theory that demonstrates the potential costs of conflict. This concept explores strategic decision-making, payoff matrices, and applications in various fields.
An equilibrium of a multi-stage game in which players are informed about the strategy choices of opponents at previous decision nodes.
An in-depth look into the Collective Action Problem, its historical context, types, key events, and detailed explanations of this significant social science issue.
A comprehensive analysis of the concept of Common Knowledge, including its definition, historical context, importance in game theory, key events, examples, considerations, related terms, and interesting facts.
Exploring the nature, history, types, significance, and practical applications of cooperative games, where players form coalitions and negotiate collective strategies.
Coordination games are scenarios in game theory where players achieve the best outcomes through cooperative strategies. Understanding these games helps in predicting and guiding behavior in economic, social, and strategic interactions.
A comprehensive exploration of Cournot Competition, an imperfect competition model where firms decide output quantities simultaneously. Includes historical context, types, key events, mathematical models, and more.
A comprehensive look into the concept of Cournot Duopoly, exploring its historical context, mathematical models, key events, and applicability in modern economics.
A comprehensive examination of credible threats, their historical context, types, key events, theoretical foundations, importance, and practical implications.
Differential games are strategic scenarios played in continuous time where the state of the system evolves according to differential equations influenced by the players' strategies.
A comprehensive guide to understanding the Dominant Strategy in game theory, its significance, examples, types, and related concepts.
An in-depth exploration of the Dominant Strategy concept in game theory, including historical context, key events, explanations, models, examples, related terms, FAQs, and more.
Double Bluff: A nuanced and sophisticated form of bluffing involving a level of strategic deception where the deceiver anticipates the opponent's awareness of the potential for bluffing.
An in-depth exploration of Duopoly, including its historical context, types, key models, importance, and related terms. Understand how two firms dominate a market and the implications of such a structure.
An in-depth exploration of equilibrium in economics, covering historical context, types, key events, mathematical models, importance, and applications, with supporting diagrams, examples, and related terms.
An in-depth analysis of the Existence of Equilibrium in economic models and games, discussing historical context, types, key events, mathematical models, and its importance in economics.
The extensive form represents a game as a tree showing decision nodes, strategies, information sets, and pay-offs, providing insights beyond those offered by the pay-off matrix.
The Folk Theorem explains that in an infinitely repeated game, any outcome in which each player receives at least their security pay-off can be an equilibrium. It is a fundamental result in game theory that was accepted informally before a formal proof was established.
An in-depth exploration of Game Theory, its historical context, key concepts, types of games, significance, and applications in various fields including economics, finance, and social sciences.
An in-depth analysis of Hold-Up in economics, its implications on investment decisions, and the ensuing dynamics of bargaining power.
Incentive compatibility ensures economic agents truthfully reveal private information, critical in various mechanisms like tax systems. Learn the historical context, types, key events, mathematical models, importance, examples, and related terms.
Incomplete Information refers to situations where economic agents do not have all relevant information, distinguishing between public and private information.
Industrial Economics explores the decision-making processes of firms and the interactions between them within the marketplace. It incorporates concepts from game theory to understand these dynamics.
A comprehensive guide to the concept of Information, its significance in economic decisions, and the implications of symmetric and asymmetric information in markets.
In-depth exploration of Information Asymmetry in economics, finance, and beyond.
Exploring the multiple definitions and applications of the kernel in mathematics, econometrics, and game theory.
An in-depth exploration of Matching Pennies, a classic two-player game theory problem with no pure strategy equilibrium but featuring a unique mixed strategy equilibrium.
An exploration of the maximin principle in distributive justice, decision theory, and game theory.
The construction of a game of strategic interaction that achieves a specific outcome, ensuring that players find it in their best interest to behave as intended by the game's designer.
An in-depth look at Minimax, a fundamental concept in decision theory focused on minimizing the maximum potential loss.
Mixed strategies involve probabilistic choices among possible strategies to optimize decision-making outcomes in game theory.
In game theory, a mixed strategy is a strategy in which a player probabilistically chooses between different pure strategies to potentially achieve better outcomes.
A comprehensive exploration of mixed strategies in game theory, detailing their application, mathematical foundations, historical context, and relevance across different fields.
A comprehensive analysis of Nash Bargaining, a mathematical model in game theory that defines a fair division of resources between two parties.
An equilibrium concept in game theory where each player's strategy is optimal given the strategies of other players. Nash equilibrium finds applications in economics, finance, and beyond.
Non-Cooperative Games are scenarios in game theory where players make decisions independently, aiming to maximize their own benefits without cooperation.
An in-depth exploration of Pareto Efficiency, its historical context, applications in economics, mathematical modeling, and importance in various fields.
A detailed exploration of the Pay-Off Matrix, its application in two-player games, historical context, examples, and related concepts in game theory.
An in-depth exploration of payoff matrices, fundamental to game theory, highlighting their structure, examples, types, and applications in strategic interactions.
A comprehensive overview of the term 'Player' in the context of game theory, including historical context, key concepts, types of players, examples, importance, and related terms.
Pooling equilibrium refers to a scenario in which agents with differing characteristics choose the same action, such as high-risk and low-risk individuals choosing the same insurance contract.
A comprehensive analysis of the Prisoners' Dilemma, exploring its historical context, mathematical models, and real-world applications.
An in-depth exploration of pure strategy in game theory where players consistently choose one strategy.
A comprehensive exploration of repeated games in game theory, including their types, importance, applications, mathematical models, and more.
Screening is a method used by an uninformed party to induce other parties with private information to act in a way that reveals this information. This concept is pivotal in situations with asymmetric information.
A comprehensive guide to understanding second-price auctions, their mechanics, historical context, key events, importance, applicability, and much more.
A comprehensive analysis of separating equilibrium, a concept where agents with different characteristics opt for distinct actions, often illustrated in markets like insurance where high-risk and low-risk agents choose different contracts.
An in-depth look into the Shapley value, a method for determining fair allocation in cooperative games, its historical context, computation process, and real-world applications.
An in-depth exploration of signalling, where actions are taken not for their direct results but to convey information to others, particularly in economics, labor markets, and finance. Understand the historical context, mechanisms, types, key events, models, and practical applications of signalling.
Understanding strategic behaviour involves making decisions with awareness of the interdependence of choices among different agents and anticipating the influence of one's actions on others. This article explores the concept in detail.
Explore the concept of Strategic Interaction, where the outcome for an economic agent is influenced by the choices of others, analyzed using game theory.
A subgame is a component of a sequential game that begins at a node where each player is fully aware of the previous actions taken in the game.
A comprehensive guide to understanding Trigger Strategy in the context of non-cooperative repeated games.
Explore the intricate dimensions of 'Trust,' including its role in economics, finance, and social science. Understand its types, historical context, key events, mathematical models, and practical applicability.
Understanding Unique Equilibrium in economic models and game theory: definition, historical context, key concepts, and applications.
A comprehensive analysis of zero-sum games, their mathematical foundations, historical context, types, key events, detailed explanations, and real-world applications.
Game Theory is the science applied to the actions of people and firms facing uncertainty, viewing private economic decisions as moves in a game where participants devise strategies aimed at achieving objectives like gaining market share and increasing revenue.
An exploration of Game Theory, a crucial field in mathematics that studies strategic interactions among rational decision-makers.
The minimax principle is a decision criterion aimed at minimizing the worst-case scenario, thus reducing possible regret by ensuring the most unfavorable outcome is as favorable as possible. It finds extensive applications in decision theory, game theory, and economics.
Explanation of Zero-Sum Game in Game Theory, where the total gains and losses of all participants balance to zero, and one participant's gain is equivalent to another's loss.
An in-depth exploration of Game Theory, examining how players strategize and make decisions in scenarios with conflicting interests.
Explore the life and contributions of John F. Nash Jr., an American mathematician renowned for his groundbreaking work in game theory, which earned him the Nobel Prize in Economics in 1994.
Explore Nash Equilibrium, a fundamental concept in game theory, including its mechanism, real-world examples, and the renowned Prisoner's Dilemma.
An in-depth exploration of the prisoner's dilemma, a fundamental concept in game theory where individuals acting in their own self-interest fail to achieve the best possible outcome for the group.
Explore the concept of Tit for Tat in game theory, its underlying mechanism, and its applications in various strategic scenarios.
An in-depth exploration of zero-sum games, where one participants gain is equal to another’s loss, with a detailed example in finance.
