How do you distinguish between game theoretic approaches?

1 Static vs dynamic games

A static game is a game where all players make their choices simultaneously, without observing the actions of others. A dynamic game is a game where players move sequentially, and can observe the previous moves of others. Static games are simpler to analyze, but may not capture the complexity and interdependence of real-world situations. Dynamic games can account for the effects of time, information, and history on strategic behavior, but may require more sophisticated methods and assumptions. Examples of static games are the prisoner's dilemma, the battle of the sexes, and the coordination game. Examples of dynamic games are the ultimatum game, the centipede game, and the Stackelberg duopoly.

2 Cooperative vs non-cooperative games

A cooperative game is a game where players can communicate, negotiate, and form binding agreements or coalitions. A non-cooperative game is a game where players cannot make any enforceable contracts or commitments. Cooperative games focus on the outcomes and payoffs of different coalitions, and how they can be distributed among the coalition members. Non-cooperative games focus on the strategies and actions of individual players, and how they can best respond to the behavior of others. Examples of cooperative games are the Shapley value, the core, and the Nash bargaining solution. Examples of non-cooperative games are the Nash equilibrium, the subgame perfect equilibrium, and the Bayesian equilibrium.

3 Complete vs incomplete information games

A complete information game is a game where all players know the rules, the payoffs, and the types of all other players. An incomplete information game is a game where some players have private or hidden information that is not known to others. Complete information games assume that players have common knowledge and can reason about each other's preferences and beliefs. Incomplete information games introduce uncertainty and asymmetric information into the game, and require players to form beliefs and update them based on signals and actions. Examples of complete information games are the matching pennies game, the chicken game, and the Cournot duopoly. Examples of incomplete information games are the signaling game, the screening game, and the auction game.

4 Zero-sum vs non-zero-sum games

A zero-sum game is a game where the total payoff of all players is constant, and any gain by one player is offset by an equal loss by another player. A non-zero-sum game is a game where the total payoff of all players can vary, and players can benefit or suffer from mutual cooperation or conflict. Zero-sum games are competitive and adversarial, and imply that there is no room for Pareto improvement or win-win solutions. Non-zero-sum games are cooperative or mixed-motive, and imply that there are potential gains from trade or coordination. Examples of zero-sum games are the chess game, the rock-paper-scissors game, and the bidding game. Examples of non-zero-sum games are the public goods game, the trust game, and the prisoner's dilemma.

5 Normal vs extensive form games

A normal form game is a game where the strategies and payoffs of all players are represented in a matrix or a table. An extensive form game is a game where the sequence and structure of moves, information, and payoffs are represented in a tree or a graph. Normal form games are convenient and compact, but may not show the details and nuances of the game. Extensive form games are explicit and comprehensive, but may be cumbersome and complex. Examples of normal form games are the prisoner's dilemma, the battle of the sexes, and the coordination game. Examples of extensive form games are the ultimatum game, the centipede game, and the Stackelberg duopoly.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?