Games of Strategy

Game Classification:
Are the game moves sequential or simultaneous? Are the players interests in total conflict or is there some commonality? Is the game played once or repeatedly, and with the same or changing opponents?
Once: No additional information. Worry about only a single game. Repeatedly: Gain information about opponent, vice versa.

Do the players have equal information?

Imperfect information: Asymmetric information:

Are the rules of the game fixed or manipulable? Are agreements to cooperate enforceable?

Terminology and Background Assumptions:

Strategies
Choices available to the players.

Payoffs
Each player has a complete numerical scale with which to compare all logically conceivable outcomes of the game, corresponding to each available combination of choices of strategies by all the players. The number associated with each possible outcome will be called that players payoff for that outcome.

Rationality
Being rational doesnt mean having the same value system as other players, or sensible people, or ethical or moral people would use; it means pursuing ones own value system consistently. One should play to the opponents capabilities instead of their limitations.

Common Knowledge of Rules

Rules of a game: (1) the list of players, (2) the strategies available to each player, (3) the payoffs of each player for all possible combinations of strategies pursued by all players, (4) the assumption that each player is a rational maximizer.

Equilibrium Dynamics and Evolutionary Games

Strategies are not chosen by conscious rational maximizers, but instead each player comes into the game with a particular strategy hardwired or programmed in. The strategies that fare better multiply faster, while the strategies that fare worse decline.

Observation and Experiment