Game Theory

  1. Dynamic Games and Sequential Decision-Making
    1. Extensive Form Games
      1. Tree Structure
        1. Nodes and Branches
          1. Information Sets
            1. Perfect Recall
            2. Strategies in Extensive Form
              1. Pure Strategies as Plans
                1. Behavioral Strategies
                  1. Mixed vs. Behavioral Strategies
                  2. Subgames
                    1. Definition and Identification
                      1. Proper Subgames
                        1. Subgame Boundaries
                      2. Backward Induction
                        1. Solution Method
                          1. Terminal Node Analysis
                            1. Recursive Optimization
                              1. Unique Solution Path
                              2. Applications
                                1. Finite Horizon Games
                                  1. Perfect Information Games
                                    1. Sequential Bargaining
                                    2. Limitations
                                      1. Incredible Threats
                                        1. Multiple Equilibria
                                      2. Subgame Perfect Equilibrium
                                        1. Definition and Properties
                                          1. Sequential Rationality
                                            1. Credible Strategies
                                              1. Refinement of Nash Equilibrium
                                              2. Finding SPNE
                                                1. Backward Induction Algorithm
                                                  1. Pruning Incredible Threats
                                                    1. Multiple Subgames
                                                    2. Applications
                                                      1. Stackelberg Competition
                                                        1. Entry Deterrence
                                                          1. Bargaining Models
                                                        2. Commitment and Credibility
                                                          1. Strategic Commitment
                                                            1. Irreversible Actions
                                                              1. Reputation Building
                                                                1. Burning Bridges
                                                                2. Credible Threats and Promises
                                                                  1. Ex-Ante vs. Ex-Post Incentives
                                                                    1. Commitment Devices
                                                                      1. Time Consistency
                                                                    2. Repeated Games
                                                                      1. Finite Repetition
                                                                        1. Chain-Store Paradox
                                                                          1. Backward Induction Logic
                                                                            1. Reputation Effects
                                                                            2. Infinite Repetition
                                                                              1. Discount Factors
                                                                                1. Present Value Calculations
                                                                                  1. Long-Term Relationships
                                                                                  2. Folk Theorems
                                                                                    1. Feasible and Individually Rational Payoffs
                                                                                      1. Trigger Strategies
                                                                                        1. Punishment and Forgiveness
                                                                                        2. Specific Strategies
                                                                                          1. Grim Trigger
                                                                                            1. Tit-for-Tat
                                                                                              1. Generous Tit-for-Tat
                                                                                                1. Win-Stay, Lose-Shift

                                                                                            Previous

                                                                                            5. Classic Static Games

                                                                                            Go to top

                                                                                            Next

                                                                                            7. Games with Incomplete Information