Next: finite-extensive-form-games-with-perfect-information
A game is a mathematical model of a strategic interaction, with the following elements:
Players: Games must have participants. Players can be people, busiensses, teams, political parties, countries, etc.
Choices: Players have to make a choice, or multiple choices between different actions. A strategy is a rule for choosing actions.
Outcomes: When the players are done choosing, an outcome occurs and the game ends. The outcome also must depend on the choices.
Preferences: Players have preferences over outcomes.
Two features are required to make a game strategic:
Games differ in a few aspects:
Timing: Do players choose once? (Rps) Or over and over again? (Chess) Does the game eventually end? Does it continue forever? Do they choose simultaneously, or in turns?
Observations: Can players observe each other’s choices?
Uncertainty: Is the outcome rnadom, or is it a deterministic function of the player’s actions? Do some players have more or less information than others?