Neha Patil (Editor)

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.

References

Open-loop model Wikipedia