Extensive Form Games

Game Theory · Axiom Academy

Unit 1 - Introduction to Game Theory A game tree is a directed graph that represents the sequential structure of a game. The tree consists of: Watch as we build a simple game tree from the ground up, starting with the initial node. 2. Decision Nodes and Terminal Nodes Every node in a game tree has a specific role: Each decision node is labeled with the player who moves at that point. Terminal nodes show the resulting payoffs for all players. The key feature of extensive form games is that they capture the sequential nature of decision-making. Players move in a specific order, and later players can observe the actions taken by earlier players. This example shows a complete game where Player 1 moves first, Player 2 observes this choice and responds, leading to one of several possible outcomes.

This is the written version of the interactive lesson above. See the full Game Theory course.