This innovative textbook is a concise and axiomatic introduction to the principles of game theory-the formal study of move and countermove. Undergraduate business and economics students with a background in the principles of microeconomics and college mathematics will find the material presented in this textbook focused, comprehensive, and accessible.
This innovative textbook is a concise and axiomatic introduction to the principles of game theory-the formal study of move and countermove. Undergraduate business and economics students with a background in the principles of microeconomics and college mathematics will find the material presented in this textbook focused, comprehensive, and accessible.
PREFACE 1 INTRODUCTION TO GAME THEORY Introduction Strategic behavior Short history of game theory Lexicon of game theory Rational versus actual behavior Practice Exercises PART I: STATIC GAMES WITH COMPLETE INFORMATION 2 COALITION GAMES Introduction Prisoner's dilemma The extensive form The normal form Nash equilibrium Shortcut for finding-pure strategy Nash equilibria Determinants of business collusion Number of firms with similar interests Firm size relative to the industry Visibility Practice Exercises 3 STRATEGIC MOVES AND DETERRING DEFECTION Introduction Strategic moves Deterring defection Contracts Reputation Cutting off communications Preventing retreat Brinksmanship Incrementalism Teamwork Agents Practice exercises 4 COMPETITION GAMES Introduction Strictly-dominant strategies Weakly-dominant strategies Iterated elimination of dominated strategies Three-player games Non-dominant strategies Maximin (secure) strategy Practice exercises 5 COORD
PREFACE 1 INTRODUCTION TO GAME THEORY Introduction Strategic behavior Short history of game theory Lexicon of game theory Rational versus actual behavior Practice Exercises PART I: STATIC GAMES WITH COMPLETE INFORMATION 2 COALITION GAMES Introduction Prisoner's dilemma The extensive form The normal form Nash equilibrium Shortcut for finding-pure strategy Nash equilibria Determinants of business collusion Number of firms with similar interests Firm size relative to the industry Visibility Practice Exercises 3 STRATEGIC MOVES AND DETERRING DEFECTION Introduction Strategic moves Deterring defection Contracts Reputation Cutting off communications Preventing retreat Brinksmanship Incrementalism Teamwork Agents Practice exercises 4 COMPETITION GAMES Introduction Strictly-dominant strategies Weakly-dominant strategies Iterated elimination of dominated strategies Three-player games Non-dominant strategies Maximin (secure) strategy Practice exercises 5 COORD
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