Monday 9 November 2015

We never play games with symmetric information, even if symmetric information has been provided to us

We all behave rationally and maximize our own expected utility. In a game, players can have symmetric information, but react like having asymmetric information. In this game, two players have equal information, but are also told they do not have complete knowledge about the game and neither of them know about what the other player know about. We can say that the two players have symmetric information. It is our human nature that we like to guess what the other player know about. Each individual is unique; therefore, each player will develop new knowledge about the game, which can be different from the other player's thoughts. Then we have a game with two players with asymmetric information. Moreover, sometimes players have a  time limit, so they only try to remember the information they believe is important. When they make their choices, the information chosen by each of them can be different. Then they start to play the game with asymmetric information, even if all players are given complete information. In reality, we can never have a game with players having symmetric information, because we like to be creative, smart and efficient.

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