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Game theory
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===Simultaneous / sequential=== {{main | Simultaneous game | Sequential game}} [[Simultaneous game]]s are games where both players move simultaneously, or instead the later players are unaware of the earlier players' actions (making them ''effectively'' simultaneous). [[Sequential game]]s (a type of dynamic games) are games where players do not make decisions simultaneously, and player's earlier actions affect the outcome and decisions of other players.<ref>{{cite book |doi=10.1016/b978-0-12-398512-5.00002-5 |chapter=Decisions in Engineering Design |title=Design Theory and Methods Using CAD/CAE |date=2015 |last1=Chang |first1=Kuang-Hua |pages=39β101 |isbn=978-0-12-398512-5 }}</ref> This need not be [[perfect information]] about every action of earlier players; it might be very little knowledge. For instance, a player may know that an earlier player did not perform one particular action, while they do not know which of the other available actions the first player actually performed. The difference between simultaneous and sequential games is captured in the different representations discussed above. Often, [[Normal form game|normal form]] is used to represent simultaneous games, while [[Extensive form game|extensive form]] is used to represent sequential ones. The transformation of extensive to normal form is one way, meaning that multiple extensive form games correspond to the same normal form. Consequently, notions of equilibrium for simultaneous games are insufficient for reasoning about sequential games; see [[subgame perfection]]. In short, the differences between sequential and simultaneous games are as follows: {| class="wikitable" |- ! !! Sequential !! Simultaneous |- | Normally denoted by || [[Decision tree]]s || [[Payoff matrix|Payoff matrices]] |- | {{longitem|style=line-height:1.3em;padding-right:0.65em|Prior knowledge<br />of opponent's move?}} || {{Yes}} || {{No}} |- | Time axis? || {{Yes}} || {{No}} |- | Also known as || {{longitem|style=line-height:1.3em|[[Extensive-form game]]<br />Extensive game}} || {{longitem|style=line-height:1.3em|[[Strategy game]]<br />Strategic game}} |}
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