Abstract
Information – who knows what, when – plays a critical role in game theory, and, in particular, in dynamic games. Thus, dynamic game theory is an ideal vehicle for exploring the interplay of dynamics and information. We confine our attention to discrete-time Linear-Quadratic Dynamic Games (LQDGs) which have the distinct advantage of readily being amenable to analysis without having to overcome conceptual and technical difficulties, closed-form results are possible, and one is in tune with modern digital signal processing techniques. In this chapter a hierarchy of discrete-time LQDGs are characterized by a sequence of information patterns which increase in complexity is analyzed and an insight into the Dynamics of Information Systems is obtained.
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