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Multistage Games

  • Jacek B. Krawczyk
  • Vladimir Petkov
Reference work entry

Abstract

In this chapter, we build on the concept of a repeated game and introduce the notion of a multistage game . In both types of games, several antagonistic agents interact with each other over time. The difference is that, in a multistage game, there is a dynamic system whose state keeps changing: the controls chosen by the agents in the current period affect the system’s future. In contrast with repeated games, the agents’ payoffs in multistage games depend directly on the state of this system. Examples of such settings range from a microeconomic dynamic model of a fish biomass exploited by several agents to a macroeconomic interaction between the government and the business sector. In some multistage games, physically different decision-makers engage in simultaneous-move competition. In others, agents execute their actions sequentially rather than simultaneously. We also study hierarchical games, where a leader moves ahead of a follower. The chapter concludes with an example of memory-based strategies that can support Pareto-efficient outcomes.

Keywords

Collusive Equilibrium Discrete-Time Games Feedback (Markovian) Equilibrium Information Patterns Open-Loop Nash Equilibrium Sequential Games Stackelberg Solutions 

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Copyright information

© Springer International Publishing AG, part of Springer Nature 2018

Authors and Affiliations

  1. 1.Victoria University of WellingtonWellingtonNew Zealand

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