March 2011
Beginner
384 pages
9h 1m
English
Content preview from The Complete Idiot's Guide to Game Theory
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Part2
How Information Affects Games
If you’re playing chess or tic-tac-toe, all the previous moves have been played in front of you and you know the exact configuration of the game at all times. Now compare this to most situations, say, in the business world. Managers need to make decisions, but they’re in the dark as to what other firms are doing. While they might be able to estimate their own profits in various market outcomes, they probably can’t estimate what the different scenarios are worth to other companies.
It turns out that the range of information available to the players makes a huge difference in how they strategize. Moreover, in ...
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