Description
This video explains what the strategic form is. We start by learning how to build a matrix to analyse games, and then use a couple of examples to see how to use it.
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In game theory, the strategic form (or normal form) is a way of describing a game using a matrix. The game is defined by exhibiting on each side of the matrix the different players, each strategy or choice they can make, and sets of payoffs they will each receive for a given strategy.
The strategic form allows us to quickly analyse each possible outcome of a game. It is usually the right description for simultaneous games, where both players choose simultaneously, as opposed to sequential games for which is better to describe the game using the extensive form (or tree form). It’s worth mentioning that simultaneous games imply there is complete and imperfect information, and the rules of the game as well as each player’s payoffs are common knowledge.
Although is not very common, sequential games can also be described using the strategic form.
Learn more by reading the dictionary entry.
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