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A situation in which the same game is played several times, allowing for strategies to evolve. In economics, it helps explain cooperation in scenarios such as trade relationships or price-fixing among competitors.

A model describing an industry structure where companies compete on price rather than quantity. It is significant in markets where price is the main factor in consumer decisions, such as perfect competition markets.

A strategy that is optimal for a player, regardless of the strategies chosen by other players. This concept is fundamental in designing incentives and mechanisms for auctions.

A feature of a game where players do not have perfect information about other players, such as their payoffs or strategies. It reflects real-world situations like business negotiations with private information.

A field in game theory that takes an engineering approach to designing economic mechanisms or incentives, toward desired objectives, with strategic players. Its applications are broad, including auction design and contract theory.

A situation where none of the players can benefit by changing strategies if the other players keep their strategies unchanged. It's widely applied in competitive markets and auctions.

A refinement of Nash Equilibrium for extensive form games where the strategy chosen must constitute a Nash Equilibrium for every subgame of the original game. It's applicable in economic scenarios with multiple stages, like R&D investments.

A game with multiple pure strategy Nash Equilibria where players benefit from making the same choices. It is relevant in economics when analyzing network effects or standard-setting in technology markets.

A strategy in which a player chooses between all possible moves according to a probability distribution. It is applied in markets to randomize strategies, making them unpredictable to competitors.

A framework for studying strategies in populations over time. It's used in economics to model behaviors in markets that evolve due to adaptive and learning processes of individuals and firms.

A canonical example of a game that shows why two completely rational individuals might not cooperate, even if it appears that it is in their best interest to do so. This is useful in studying oligopolistic markets and trade negotiations.

A feature of a game where all players know the game structure, strategies, and payoffs available to other players. It's critical in markets with transparency and full disclosure, like financial markets.

An element of a game that players might focus on in the absence of communication, which helps solve coordination problems. It's observed in economic environments that require a natural point of agreement, such as standard currency in trade.

A situation in which the interacting parties' aggregate gains and losses can be more or less than zero. This is found in trade negotiations where mutual benefits can be achieved.

A game in which two players head toward each other and the one who swerves is considered the 'chicken'. It's a metaphor used in economics for brinkmanship in business strategies and negotiations.

A strategy in which a player makes a specific choice or action with certainty. In economics, it's seen in markets where firms consistently choose the same action, like always pricing at a premium.

A situation in which one participant's gain (or loss) is exactly balanced by the losses (or gains) of the other participants. It is often used in analyzing market competition where one firm's gains are competitors' losses.

A strategy in repeated games where a player copies the opponent's previous move, starting with cooperation. It's used as a strategy in repeated oligopoly models and in establishing trust and cooperation in trade relationships.

A table that shows the payoffs for every possible action by each participant, given the actions of the other participants. It's a key tool in analyzing strategic interactions in market entry and pricing strategies.

A strategic game in which one leader firm moves first and followers move sequentially. This model is pertinent to industries where leaders and followers are clearly distinguished, like the high-tech industry.

A game that illustrates coordination problems where players have different preferences on the equilibrium outcomes. It's used in economic models where parties need to agree on a common strategy but have different preferences.

This represents a situation in a way that shows the sequence of actions and choices available to players. Used in economics to model dynamic interactions, such as bargaining or sequential market entry.

Games in which players have incomplete information, but they have beliefs about the missing information, often represented with probability distributions. Such games model economic situations with uncertainty and asymmetric information.

A model describing an industry structure where companies compete on the amount of output they will produce, which they decide independently and at the same time. It's used in oligopoly models where firms decide on quantities simultaneously.