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Complete Information
In economics and game theory, complete information is an economic situation or game in which knowledge about other market participants or players is available to all participants. The utility functions (including risk aversion), payoffs, strategies and "types" of players are thus common knowledge. Complete information is the concept that each player in the game is aware of the sequence, strategies, and payoffs throughout gameplay. Given this information, the players have the ability to plan accordingly based on the information to maximize their own strategies and utility at the end of the game. A typical example is the prisoner's dilemma. Inversely, in a game with incomplete information, players do not possess full information about their opponents. Some players possess private information, a fact that the others should take into account when forming expectations about how those players will behave. A typical example is an auction: each player knows their own utility function (valua ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Economics
Economics () is a behavioral science that studies the Production (economics), production, distribution (economics), distribution, and Consumption (economics), consumption of goods and services. Economics focuses on the behaviour and interactions of Agent (economics), economic agents and how economy, economies work. Microeconomics analyses what is viewed as basic elements within economy, economies, including individual agents and market (economics), markets, their interactions, and the outcomes of interactions. Individual agents may include, for example, households, firms, buyers, and sellers. Macroeconomics analyses economies as systems where production, distribution, consumption, savings, and Expenditure, investment expenditure interact; and the factors of production affecting them, such as: Labour (human activity), labour, Capital (economics), capital, Land (economics), land, and Entrepreneurship, enterprise, inflation, economic growth, and public policies that impact gloss ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Contract Bridge
Contract bridge, or simply bridge, is a trick-taking game, trick-taking card game using a standard 52-card deck. In its basic format, it is played by four players in two Team game, competing partnerships, with partners sitting opposite each other around a table. Millions of people play bridge worldwide in clubs, bridge tournaments, tournaments, online and with friends at home, making it one of the world's most popular card games, particularly among Old Age, seniors. The World Bridge Federation (WBF) is the governing body for international competitive bridge, with numerous other bodies governing it at the regional level. The game consists of a number of , each progressing through four phases. The cards are to the players; then the players ''call'' (or ''bid'') in an seeking to take the , specifying how many tricks the partnership receiving the contract (the declaring side) needs to take to receive points for the deal. During the auction, partners use their bids to exchange infor ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Jean Tirole
Jean Tirole (born 9 August 1953) is a French economist who is currently a professor of economics at Toulouse 1 Capitole University. He focuses on industrial organization, game theory, banking and finance, and psychology. In particular, he focuses on the regulation of economic activity in a way that does not hinder innovation while maintaining fair rules. Tirole's work is largely theoretical and explored in mathematical models, not empirical research. In 2014, he received the Nobel Memorial Prize in Economic Sciences for his analysis of market power and regulation. Education Tirole received engineering degrees from the École Polytechnique in 1976, and from the École nationale des ponts et chaussées in 1978. He was appointed a member of the elite Corps of Bridges, Waters and Forests, later completing graduate studies at Université Paris Dauphine; he received a DEA degree in 1976, and a Doctorat de troisième cycle in decision mathematics in 1978. He received a Ph.D ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Signaling Game
In game theory, a signaling game is a type of a dynamic game, dynamic Bayesian game.Subsection 8.2.2 in Fudenberg Trole 1991, pp. 326–331 The essence of a signaling game is that one player takes action, the signal, to convey information to another player. Sending the signal is more costly if the information is false. A manufacturer, for example, might provide a warranty for its product to signal to consumers that it is unlikely to break down. A traditional example is a worker who acquires a college degree not because it increases their skill but because it conveys their ability to employers. A simple signaling game would have two players: the sender and the receiver. The sender has one of two types, which might be called "desirable" and "undesirable," with different payoff functions. The receiver knows the probability of each type but not which one this particular sender has. The receiver has just one possible type. The sender moves first, choosing an action called the "sign ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Screening Game
A screening game is a two-player principal–agent type game used in economic and game theoretical modeling. Principal–agent problems are situations where there are two players whose interests are not necessarily matching with each other, and where complete honesty is not optimal for one player. This will lead to strategies where the players exchange information based in their actions which is to some degree noisy. This ambiguity prevents the other player from taking advantage of the first. The game is closely related to signaling games, but there is a difference in how information is exchanged. In the principal-agent model, for instance, there is an employer (the principal) and a worker (the agent). The worker has a given skill level, and chooses the amount of effort he will exert. If the worker knows his ability (which is given at the outset, perhaps by nature), and can acquire credentials or somehow signal that ability to the employer before being offered a wage, then the ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Market Impact
In financial markets, market impact is the effect that a market participant has when it buys or sells an asset. It is the extent to which the buying or selling moves the price against the buyer or seller, i.e., upward when buying and downward when selling. It is closely related to market liquidity; in many cases "liquidity" and "market impact" are synonymous. Especially for large investors, e.g., financial institutions, market impact is a key consideration before any decision to move money within or between financial markets. If the amount of money being moved is large (relative to the turnover of the asset(s) in question), then the market impact can be several percentage points and needs to be assessed alongside other transaction costs (costs of buying and selling). Market impact can arise because the price needs to move to tempt other investors to buy or sell assets (as counterparties), but also because professional investors may position themselves to profit from knowledge th ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Handicap Principle
The handicap principle is a hypothesis proposed by the Israeli biologist Amotz Zahavi in 1975. It is meant to explain how "signal selection" during mate choice may lead to Signalling theory, "honest" or reliable signalling between male and female animals which have an obvious motivation to bluff or deceive each other. The handicap principle suggests that secondary sexual characteristics are costly signals which must be reliable, as they cost the signaller resources that individuals with less of a particular trait could not afford. The handicap principle further proposes that animals of greater fitness (biology), biological fitness signal this through handicapping ethology, behaviour, or Morphology (biology), morphology that effectively lowers overall fitness. The central idea is that sexually selected traits function like conspicuous consumption, signalling the ability to afford to squander a resource. Receivers then know that the signal indicates quality, because inferior-quality ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Chess
Chess is a board game for two players. It is an abstract strategy game that involves Perfect information, no hidden information and no elements of game of chance, chance. It is played on a square chessboard, board consisting of 64 squares arranged in an 8×8 grid. The players, referred to as White and Black in chess, "White" and "Black", each control sixteen Chess piece, pieces: one king (chess), king, one queen (chess), queen, two rook (chess), rooks, two bishop (chess), bishops, two knight (chess), knights, and eight pawn (chess), pawns, with each type of piece having a different pattern of movement. An enemy piece may be captured (removed from the board) by moving one's own piece onto the square it occupies. The object of the game is to "checkmate" (threaten with inescapable capture) the enemy king. There are also several ways a game can end in a draw (chess), draw. The recorded history of chess goes back to at least the emergence of chaturanga—also thought to be an ancesto ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Zero-sum Game
Zero-sum game is a Mathematical model, mathematical representation in game theory and economic theory of a situation that involves two competition, competing entities, where the result is an advantage for one side and an equivalent loss for the other. In other words, player one's gain is equivalent to player two's loss, with the result that the net improvement in benefit of the game is zero. If the total gains of the participants are added up, and the total losses are subtracted, they will sum to zero. Thus, Fair cake-cutting, cutting a cake, where taking a more significant piece reduces the amount of cake available for others as much as it increases the amount available for that taker, is a zero-sum game if marginal utility, all participants value each unit of cake equally. Other examples of zero-sum games in daily life include games like poker, chess, sport and Contract bridge, bridge where one person gains and another person loses, which results in a zero-net benefit for every ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Poker
Poker is a family of Card game#Comparing games, comparing card games in which Card player, players betting (poker), wager over which poker hand, hand is best according to that specific game's rules. It is played worldwide, with varying rules in different places. While the earliest known form of the game was played with just 20 cards, today it is usually played with a standard 52-card deck, although in countries where short packs are common, it may be played with 32, 40 or 48 cards.Parlett (2008), pp. 568–570. Thus poker games vary in deck configuration, the number of cards in play, the number Poker dealer, dealt face up or face down and the number Community card poker, shared by all players, but all have rules that involve one or more rounds of Betting in poker, betting. In most modern poker games, the first round of betting begins with one or more of the players making some form of a forced bet (the ''blind (poker), blind'' or ''ante''). In standard poker, each player bets a ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
