Nash games with decision-dependent information structures

This paper considers a class of two-person Nash games where the players announce their strategies at the same time but they apply their strategies at different times. The player who makes the last move can formulate his strategy as a function of the other player´s decision. A single stage two person Nash game with this type of decision-dependent information structure is discussed and a static game model of a market structure is given. This market contains two sellers who are assumed to behave as Cournot-Nash duopolist, but with a decision-dependent information structure. It is shown that the seller who makes the last move can always increase his profits by using his knowledge of the other seller´s strategy. This type of a decision-dependent information structure is then examined in the multi-stage dynamic case.