Perfect informationPerfect information is a concept in game theory and economics that describes a situation where all players in a game or all participants in a market have knowledge of all relevant information in the system. This is different than complete information, which implies common knowledge of each agent's utility functions, payoffs, strategies and "types". A system with perfect information may or may not have complete information.
Nash equilibriumSolution concept of a non-cooperative gameIn game theory, a Nash equilibrium is a situation where no player could gain more by changing their own strategy (holding all other players' strategies fixed) in a game. A Nash equilibrium is the most commonly used solution concept for non-cooperative games.
Bayesian gameIn game theory, a Bayesian game is a strategic decision-making model which assumes players have incomplete information. Players may hold private information relevant to the game, meaning that the payoffs are not common knowledge. Bayesian games model the outcome of player interactions using aspects of Bayesian probability. They are notable because they allowed the specification of the solutions to games with incomplete information for the first time in game theory.
Game theoryMathematical models of strategic interactionsGame theory is the field of applied mathematics that models interactions between multiple agents as "games" of strategy between "players". It is a scientific method of describing, predicting, evaluating, and selecting choices (or "actions"), often with the view of maximising utility outcomes (or "payoffs") for one or more players.
Battleship (game)Battleship (also known as Battleships) is a strategy type guessing game for two players. It is played on ruled grids (paper or board) on which each player's fleet of warships are marked. The locations of the fleets are concealed from the other player. Players alternate turns calling "shots" at the other player's ships, and the objective of the game is to destroy the opposing player's fleet.Common knowledge (logic)Common knowledge is a special kind of knowledge for a group of agents. It is applied in the following way: there is common knowledge of p in a group of agents G when all the agents in G know p, they all know that they know p, they all know that they all know that they know p, and so on ad infinitum. It can be denoted as C G p {\displaystyle C_{G}p} . The concept was first introduced in the philosophical literature by David Kellogg Lewis in his study Convention (1969).
Probability distributionMathematical function for the probability a given outcome occurs in an experimentIn probability theory and statistics, a probability distribution describes how probabilities are assigned to the possible results of a random phenomenon—more precisely, to events, which are sets of possible outcomes of a probabilistic experiment. Informally, a probability distribution tells us how likely different results are.Prisoner's dilemmaIn game theory, the prisoner's dilemma is a thought experiment involving two rational agents, each of whom can either cooperate for mutual benefit or betray their partner ("defect") for individual gain. The dilemma arises from the fact that while defecting is rational for each agent, cooperation yields a higher payoff for each. The puzzle was designed by Merrill Flood and Melvin Dresher in 1950 during their work at the RAND Corporation.John HarsanyiJohn Charles Harsanyi (Hungarian: Harsányi János Károly; May 29, 1920 – August 9, 2000) was a Hungarian-American economist who spent most of his career at the University of California, Berkeley. He was the recipient of the Nobel Memorial Prize in Economic Sciences in 1994.Backward inductionBackward induction is the process of determining a sequence of optimal choices by reasoning from the endpoint of a problem or situation back to its beginning using individual events or actions. Backward induction involves examining the final point in a series of decisions and identifying the optimal process or action required to arrive at that point. This process continues backward until the best action for every possible point along the sequence is determined.
AuctionProcess of offering goods or services up for bidsAn American auctioneer using auction chant at a livestock auction, November 2010An auction is usually a process of buying and sellinggoods or services by offering them up for bids, taking bids, and then selling the item to the highest bidder or buying the item from the lowest bidder. Some exceptions to this definition exist and are described in the section about different types.
EconomicsSocial science studying goods and servicesEuro coinsEconomics () is a social science that studies the production, distribution, and consumption of goods and services. Economics focuses on the behaviour and interactions of economic agents and how economies work. Microeconomics analyses what is viewed as the basic elements of economies, including individual agents and markets, their interactions, and the outcomes of those interactions.*As an Amazon Associate I earn from qualifying purchases.