Open-loop model

In game theory, an open loop model is the one where players can not observe the play of their opponents, as opposed to a closed loop model, where all past play is common knowledge. The solution an open loop model is called "open loop equilibrium".

Open loop models are more tractable, which is why they are sometimes prefered to closed loop models even when the later is a better description of reality.

References

Fudenberg, Drew and Levine, David K.: Open-Loop and Closed-Loop Equilibria in Dynamic Games with Many players, Journal of Economic Theory 44, 1988.