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Definition of "nested structure" |
an information structure in which each player has an access to the information acquired by all his precedents, i.e., players situated closer to the beginning of the decision process. If the difference between the information available to a player and his closer precedent involves only his actions, then the structure is ladder-nested. This structure enables decomposition of the decision process onto static games that in turn results in recursive procedure for its solution. For dynamic infinite discrete-time decision processes, the ladder-nested structure results in the classical information pattern. |
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