Strategic Behavior
Chapter 2 –Building a Model of a Strategic Situation
Outline
Introduction
2.2
Extensive form games: perfect information
2.3
Extensive form games: imperfect information
2.4
What is a strategy?
2.5
Strategic form games
2.8
Common knowledge
Key Terms: extensive form, perfect information, imperfect information, information set,
strategy, strategy set, strategic form, common knowledge
From this chapter, the questions from the homework assignment are the most important to
understand and be able to solve. Since chapter 2 builds on chapter 1, the concept of strategic
reasoning presented initially in chapter 1 also is important.