Game theory

What defines a zero-sum game?

In a zero-sum game, one player’s gain is exactly balanced by the losses of other players.

Give an example of a completely aligned interest scenario.

A social convention where players want to dress the same.

What type of game involves both conflict and cooperation?

A mixed-motive game.

What characterizes sequential moves in a game?

Players take turns making moves.

In a simultaneous move game, what do players do?

Both players make their moves at the same time.

Define imperfect information in the context of game theory.

When some players do not know certain previous moves of other players.

What is perfect information?

A situation where players are aware of all previous moves made by all players.

What does incomplete information refer to?

Players do not know something about the game such as payoffs or available actions.

Give an example of a situation with private information.

Poker is a common example of a game with private information.

What is asymmetric information?

A condition where some players have more information than others.

How does strategic uncertainty affect players?

Players feel uncertain about what choices others will make.

What can cause strategic uncertainty in a game?

Multiple equilibria or players choosing mixed strategies can lead to strategic uncertainty.

In game theory, what is a player's type?

Private information that reflects a player's characteristics or payoffs.

What are screening and signaling in the context of information asymmetry?

Screening is when players without information try to learn it, while signaling is when informed players share their knowledge.

What is a mixed-motive game?

A game that involves elements of both conflict and cooperation.