Multistage Games

Introduction

Normal-form games models a game where players choose their moves simultaneously without observing other players moves. Extensive-form games adds a possibility playing sequentially - allowing players to learn about the choices of previous players, so the player can condition his moves based on previous players decisions. Extensive-form games have their payoff expressed after the end of the game (one "grand game"). In reality, dynamic play over time may be more complex than one game that unfolds over time. Instead, players can play one game that is followed by another, or maybe even several other games. Should we treat each game independently, or should we expect players to consider the sequence of different games as one "grand game"?

Definition

Information Sets

Information sets model the information players have when they are choosing their actions. They can be viewed as a generalization of the idea of a history.

Solved Example

(more examples are better; one simple, others more advanced)

Relevant facts

(how the phenomenon is used, etc.)

Exercises

that students could use to practice the problem and that could be an inspiration for test questions