Open-loop model

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In game theory, an open-loop model is the one where players cannot observe the play of their opponents, as opposed to a closed-loop model, where all past play is common knowledge. The solution to an open-loop model is called open-loop equilibrium.

Open loop models are more tractable, which is why they are sometimes preferred to closed-loop models even when the latter is a better description of reality.[1]

References

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