Introduction to game theory (Q5917502)

In this fifth revised edition of their well-established textbook on game theory the authors offer a thorough and up-to-date treatment of the subject and its role in the study of economics. As stated in the Introduction, ``Many economists today regard game theory as the formal language of economic theory. The goal of this textbook is to provide an introduction to the formal concepts (of game theory) and to motivate them by means of examples from economic theory. \([\dots]\) In this way the relationship between the formulation of economic problems and the formulation of game-theoretic concepts is worked out.'' After a one-page introduction to game theory and economics along the lines described above, the authors introduce many of the essential characteristics of a game situation via the prisoner's dilemma. This is followed in the introductory chapter by an overview of such concepts as Nash equilibrium, extensive form, binding obligations, repeated games, cooperative games, axiomatic approach, the Nash program, and formulation of game rules. The remaining chapters are: 2. Fundamental concepts (player set, strategy space, expected payoff function, payout space, information). 3. Solution concepts for noncooperative games in strategic form. 4. Dynamic games. 5. Individualistic-cooperative games and negotiation games. 6. Coalition games. 7. Implementation and design of mechanism. 8. Evolutionary games. There is a 21-page list of references, a subject index and a person index. The book will continue to serve as an excellent textbook on game theory for economics students.