Economics Game Theory In Behavioral Economics Questions
Simultaneous games and sequential games are two different types of games in game theory.
In simultaneous games, all players make their decisions simultaneously, without knowing the decisions of other players. They choose their strategies independently, and the outcomes are determined based on the combination of strategies chosen by all players. Examples of simultaneous games include the Prisoner's Dilemma and the Battle of the Sexes.
On the other hand, sequential games involve players making decisions in a specific order, where the actions of one player can influence the decisions of subsequent players. In sequential games, players have knowledge of the previous players' actions before making their own decisions. Examples of sequential games include the Ultimatum Game and the Centipede Game.
In summary, the main difference between simultaneous and sequential games lies in the timing of decision-making and the information available to players. Simultaneous games involve simultaneous decision-making without knowledge of other players' choices, while sequential games involve decision-making in a specific order with knowledge of previous players' actions.