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∈
∈ H (K may be infinite) and L K then (ak )L
∈
∈ H .
∈
∈ H for every positive integer L then (ak )∞
∈
∈ H .
∈
∈ H is terminal if it is infinite of if there is no aK +1
Chapter8
Extensivegameswithperfectinformation
We investigate games with perfect information in which each player is perfectly informed about the players previ- ous actions at each point in the game. e standard solution concept for such games is the notion of subgame perfect equilibrium in which each player is required to reassess his plans as play proceeds.
8.1 Extensivegameswithperfectinformation
8.1 Definition: An extensive game with perfect information is defined as:
Γ = ?N,H,P, (?i)?.
? A set N of players.
? A set H of sequences that satisfies the following three properties.
– e empty sequence ? is a member of H. – If (ak )K1
1
– If an infinite sequence (ak )∞1 satisfies (ak )L1 1
Each member of H is a history; each compenent of a history is an action.
A history (ak )K1
terminal histories is denoted Z .
such that (ak )K+1
∈ H . e set of
? A function P : H \ Z → N that assigns to each nonterminal history a member of N .
P is called the player function, and P (h) is the player who takes an action aer the history h.
? For each player i a preference relation on Z.
8.2 e game tree is a convenient representation for a extensive game.
8.3 Aer any nonterminal history h player P (h) chooses an action from
A(h) = {a : (h,a) ∈ H}.
8.4 If the set H of possible histories is finite then the game is finite. If the length of every history is finite then the game has a finite horizon. For an extensive game Γ denote by ?(Γ) the length of the longest history in Γ; we refer to ?(Γ) as the length of Γ.
85
?
?N,H|h,P |h, (?
0
0, 0
2, 1
1, 2
1, 2
86 Chapter 8. Extensive games with perfect information
8.5 Definition: A strategy si of player i in the extensive game Γ is a function that assigns an action in A(h) to each nonterminal history h ∈ H \ Z for which P (h) = i. Astrategyspecifiestheactionchosenbyapla
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