Game Theory Glossary

A method of solving sequential games by analyzing from the end of the game tree to the beginning.

A coordination game with two pure strategy Nash Equilibria reflecting conflicting preferences over coordinated outcomes.

A game with incomplete information where players have uncertainty about other players' types or payoffs.

A strategy that yields the highest payoff for a player given the strategies chosen by all other players.

A subset of players in a cooperative game who agree to coordinate their strategies for mutual benefit.

A fact known by all players, known to be known by all players, and so on to infinite depth.

A game where players can form binding agreements and coalitions, focusing on how surplus is distributed.

A strategy that produces a higher payoff than any alternative regardless of opponents' choices.

Application of game theory to biology where strategy frequencies change over time based on reproductive fitness.

A game tree representation showing the sequential order of moves, information, and payoffs.

A solution people naturally gravitate toward in the absence of communication, due to its salience.

A graphical representation of a sequential game showing nodes (decisions), branches (actions), and terminal payoffs.

A collection of decision nodes among which a player cannot distinguish, representing imperfect information.

The science of designing game rules so that strategic behavior by self-interested players produces desired outcomes.

A strategy that minimizes the maximum possible loss, optimal in two-player zero-sum games.

A probability distribution over a player's set of pure strategies.

A strategy profile where no player benefits from unilaterally changing their strategy.

A game analyzed at the level of individual strategic decisions without binding agreements.

An outcome from which no player can be made better off without making another worse off.

A table showing the payoffs to each player for every possible combination of strategies.

A deterministic plan of action specifying exactly one move at each decision point.

A game played multiple times by the same players, where past actions can influence future behavior.

A fair allocation method in cooperative games assigning each player their average marginal contribution.

A dynamic game where an informed player sends a signal to an uninformed player before the latter acts.

A game where one player's gain is exactly equal to the other's loss, with total payoffs summing to zero.