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Finite Games with Incomplete Information

In: Game Theory

Author

Listed:
  • Hans Peters

    (Maastricht University)

Abstract

In a game of imperfect information players may be uninformed about the moves made by other players. Every one-shot, simultaneous move game is a game of imperfect information. In a game of incomplete information players may be uninformed about certain characteristics of the game or of the players. For instance, a player may have incomplete information about actions available to some other player, or about payoffs of other players. Incomplete information is modelled by assuming that every player can be of a number of different types. A type of a player summarizes all relevant information (in particular, actions and payoffs) about that player. Furthermore, it is assumed that each player knows his own type and, given his own type, has a probability distribution over the types of the other players. Often, these probability distributions are assumed to be consistent in the sense that they are the marginal probability distributions derived from a basic commonly known distribution over all combinations of player types.

Suggested Citation

  • Hans Peters, 2015. "Finite Games with Incomplete Information," Springer Texts in Business and Economics, in: Game Theory, edition 2, chapter 5, pages 71-88, Springer.
  • Handle: RePEc:spr:sptchp:978-3-662-46950-7_5
    DOI: 10.1007/978-3-662-46950-7_5
    as

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