The very concepts of strategy, utility function
and extensive (tree like) representation are static. The dynamic is
retrospective, not prospective. To be dynamic, the game must include
all the information about all the actors, all their strategies, all
their utility functions. Each game is a subset of a higher level game,
a private case of an implicit game which is constantly played in the
background, so to say. This is a hyper-game of which all games are but
derivatives. It incorporates all the physically possible moves of all
the players. An outside agency with enforcement powers (the state, the
police, the courts, the law) are introduced by the players. In this
sense, they are not really an outside event which has the effect of
altering the game fundamentally. They are part and parcel of the
strategies available to the players and cannot be arbitrarily ruled
out. On the contrary, their introduction as part of a dominant strategy
will simplify Game theory and make it much more applicable. In other
words: players can choose to compete, to cooperate and to cooperate in
the formation of an outside agency.
There is no logical or mathematical reason to exclude the latter
possibility.
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