The fundamental difference between sequential and simultaneous games lies in the timing of player actions and the information available to them. In simultaneous games, like the prisoners' dilemma, players act concurrently without knowledge of their opponents' choices. Conversely, in sequential games, such as the ultimatum game, players move in a specified order, allowing later players to observe and react to the moves of those who acted before them.

Google

A game, in the context of game theory, is formally defined by its set of rules. These rules establish the fundamental components of the strategic interaction, which include: identifying the players (who is involved), defining their possible actions or strategies (what they can do), specifying the sequence of play (when they can act), and detailing the resulting payoffs for each player based on the combination of actions taken.

The Rules of a Game in Game Theory

To cite the ebook, use The CORE Econ Team 2023 The Economy 2.0: Microeconomics Open access e-text https://core-econ.org/the-economy/.

To cite a unit, use The CORE Econ Team 2023 The Economy 2.0: Microeconomics Open access e-text https://core-econ.org/the-economy/ Unit [unit number] (url).

CORE Econ - The Economy 2.0: Microeconomics

A sequential game is a type of game where players do not all choose their strategies at the same time. In these games, players who choose later can see the strategies already chosen by the other players. The ultimatum game is a well-known example of a sequential game.

Sequential Game

Sequential vs. Simultaneous Games

A simultaneous game is a type of strategic interaction where players choose their strategies concurrently, without knowing the actions chosen by other players. The prisoners’ dilemma is a prominent example of a simultaneous game. Such games can be played just once (a 'one-shot' game) or multiple times.

Learn Before

Related