NoNameProf

in game theory, when you do not know when the game will end, it is essentially a game with infinite time horizon. on the other hand, if you know when the game will end, regardless how far the end will be, it is finite time horizon. the optimal strategy in these two cases are usually quite different. the key driving force that causes the difference is that in the case of finite game (end is known), you can deduct backwards what is the best thing you should do, starting from the period (e.g., year) the game will end, then the period before the game will end, then two periods before the game will end, …

the fact nobody (well, most of us) does not know when we will die, or at least does not want to think about it, makes life an (almost) infinitely repeated game. i think it will be very helpful if we consider the scenario that it will end at a definite time, i think it will really change our perspectives.