Changes the outcome in sequential games by reducing the first-mover advantage
- The ability to make counteroffers transforms bargaining from a game in which first-mover advantage trumps all to a game in which patience is the winning strategy
-In almost all cases, the value of a given sum in the future is less than the value of that sum now
-The surplus will be divided in proportion to the patience of each player

Respuesta :

Repeated Sequential Games. Multiple players participate in a sequential game, but they do not make decisions simultaneously. One player's choice influences the outcomes and choices of other players.

A sequential game in game theory is one in which one player decides their course of action before the other players do. In order to prevent the disparity in time from having an impact on strategy, the other players must be aware of the first player's decision. Decision trees are used to describe sequential games, which are controlled by the time axis. Combinatorial game theory can be used to quantitatively analyze sequential games with perfect information. Decision trees are a comprehensive kind of dynamic games that offer details on the various strategies that can be used to play a certain game. They display the order in which players take action as well as how frequently each player might choose. Decision trees also reveal the knowledge and ignorance of each player at the time they choose an action to take. Each player receives rewards at the decision nodes of the decision tree. In the early years of game theory, between 1910 and 1930, Neumann introduced and Kuhn further developed extensive form representations.

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