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Chapter 2
Dynamic Games of Complete and Perfect
Information
In this chapter we introduce dynamic games.
We again restrict attention to games with
complete information(i.e.,games in which the
players’ payoff functions are common
knowledge).We analyze dynamic games that
have not only complete but also perfect
information, by which we mean that at each
move in the game the player with the move
knows the full history of the play of the game
thus far.
The key features of a dynamic game of complete
and perfect information are that ( ⅰ)the moves
occur in sequence, ( ⅱ)all previous moves are
observed before the next move is chosen, and
(ⅲ)the players’ payoffs from each feasible
combination of moves are common knowledge.
P72
一、Basic Problems of dynamic games
(一)Extensive-Form Representation of games
In chapter 1 we analyzed static games by
representing such games in normal form. We
now analyze dynamic games by representing
such games in extensive form. This expositional
approach may make it seem that static games
must be represented in normal form and
dynamic games in extensive form, but this is
not the case. Any game can be represented in
either normal or extensive form, although for
some games one of the two forms is more
convenient to analyze. We will discuss how
static games can be represented using the
extensive form and how dynamic games can be
represented using the normal form.
Recall from chapter 1 that the normal-form
representation of a game specifies: ……
博弈的扩展式表述
Definition The extensive-form representation of
a game specifies: (1)the players in the game,
(2a)when each player has the move(i.e.,the order
of action ), (2b)what each player can do at each
of his or her opportunities to move(i.e.,the moves
set of each player), (2c)what each player knows
at each of his or her opportunities to move(i.e.,if
the players have perfect information), and (3)the
payoff received by each
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