Strategy: An Introduction to Game Theory
Author: Joel Watson
In this innovative textbook, Joel Watson adopts a refreshing new format for teaching game theory to advanced undergraduates. The book is rigorous and mathematically precise but also extremely careful in its focus on using the simplest possible models and least complicated mathematics necessary. Another innovation of the book is the way in incorporates elements of contemporary contract theory into the exposition, in a format that is highly engaging for students and easily adapted to the standard coverage familiar to teachers.
Table of Contents:
Preface | xiii | |
1 | Introduction | 1 |
Noncooperative Game Theory | 2 | |
Contract and Cooperative Game Theory | 4 | |
The Meaning of "Game" | 5 | |
Part I | Representing Games | 7 |
2 | The Extensive Form | 9 |
Other Examples and Conventions | 15 | |
Exercises | 19 | |
3 | Strategies | 23 |
Exercises | 27 | |
4 | The Normal Form | 29 |
Classic Normal-Form Games | 30 | |
Interpretation of the Normal Form | 32 | |
Exercises | 34 | |
5 | Beliefs, Mixed Strategies, and Expected Utility | 38 |
Exercises | 40 | |
Part II | Analyzing Behavior in Static Settings | 43 |
6 | Dominance and Best Response | 45 |
Dominance | 45 | |
The First Strategic Tension and the Prisoners' Dilemma | 47 | |
The Concept of Efficiency | 49 | |
Best Response | 50 | |
Dominance and Best Response Compared | 52 | |
Exercises | 55 | |
7 | Rationalizability and Iterated Dominance | 58 |
The Second Strategic Tension | 61 | |
Exercises | 63 | |
8 | Location and Partnership | 67 |
A Location Game | 67 | |
A Partnership Game: Strategic Complementarities | 70 | |
Exercises | 76 | |
9 | Congruous Strategies and Nash Equilibrium | 79 |
Congruous Sets | 81 | |
Nash Equilibrium | 82 | |
Equilibrium of the Partnership Game | 86 | |
Coordination and Social Welfare | 87 | |
The Third Strategic Tension | 89 | |
Aside: Behavioral Game Theory | 90 | |
Exercises | 92 | |
10 | Oligopoly, Tariffs, and Crime and Punishment | 95 |
Cournot Duopoly Model | 95 | |
Bertrand Duopoly Model | 97 | |
Tariff Setting by Two Countries | 98 | |
A Model of Crime and Police | 99 | |
Exercises | 100 | |
11 | Mixed-Strategy Nash Equilibrium | 104 |
Exercises | 106 | |
12 | Strictly Competitive Games and Security Strategies | 111 |
Exercises | 113 | |
13 | Contract, Law, and Enforcement in Static Settings | 115 |
Complete Contracting in Discretionary Environments | 119 | |
Contracting with Court-Imposed Breach Remedies | 122 | |
Exercises | 127 | |
Part III | Analyzing Behavior in Dynamic Settings | 131 |
14 | Details of the Extensive Form | 133 |
Exercises | 136 | |
15 | Backward Induction and Subgame Perfection | 137 |
Sequential Rationality and Backward Induction | 138 | |
Subgame Perfection | 141 | |
Exercises | 145 | |
16 | Topics in Industrial Organization | 150 |
Advertising and Competition | 150 | |
A Model of Limit Capacity | 152 | |
Dynamic Monopoly | 155 | |
Price Guarantees as a Commitment to High Prices | 159 | |
Exercises | 161 | |
17 | Parlor Games | 165 |
Exercises | 167 | |
18 | Bargaining Problems | 170 |
Bargaining: Value Creation and Division | 170 | |
An Abstract Representation of Bargaining Problems | 172 | |
An Example | 174 | |
The Standard Bargaining Solution | 176 | |
Exercises | 178 | |
19 | Analysis of Simple Bargaining Games | 180 |
Ultimatum Games: Power to the Proposer | 180 | |
Two-Period, Alternating-Offer Games: Power to the Patient | 182 | |
Infinite-Period, Alternating-Offer Game | 186 | |
Exercises | 187 | |
20 | Games with Joint Decisions; Negotiation Equilibrium | 191 |
Joint Decisions | 192 | |
Negotiation Equilibrium | 194 | |
Example: Contracting for High-Powered Incentives | 195 | |
Exercises | 197 | |
21 | Investment, Hold Up, and Ownership | 201 |
Hold Up Example | 201 | |
Asset Ownership | 203 | |
Exercises | 205 | |
22 | Repeated Games and Reputation | 210 |
A Two-Period Repeated Game | 211 | |
An Infinitely Repeated Game | 216 | |
The Equilibrium Payoff Set with Low Discounting | 219 | |
Exercises | 223 | |
23 | Collusion, Trade Agreements, and Goodwill | 227 |
Dynamic Oligopoly and Collusion | 227 | |
Enforcing International Trade Agreements | 229 | |
Goodwill and Trading a Reputation | 230 | |
Exercises | 233 | |
Part IV | Information | 237 |
24 | Random Events and Incomplete Information | 239 |
Exercises | 243 | |
25 | Risk and Incentives in Contracting | 245 |
Risk Aversion | 245 | |
A Principal-Agent Game | 249 | |
Exercises | 254 | |
26 | Bayesian Nash Equilibrium and Rationalizability | 256 |
Exercises | 258 | |
27 | Trade with Incomplete Information | 262 |
Markets and Lemons | 262 | |
Auctions | 264 | |
Exercises | 269 | |
28 | Perfect Bayesian Equilibrium | 272 |
Conditional Beliefs about Types | 273 | |
Sequential Rationality | 274 | |
Consistency of Beliefs | 275 | |
Equilibrium Definition | 276 | |
Exercises | 278 | |
29 | Job-Market Signaling and Reputation | 282 |
Jobs and School | 282 | |
Reputation and Incomplete Information | 285 | |
Exercises | 288 | |
Appendices | 293 | |
A | Review of Mathematics | 295 |
Sets | 295 | |
Functions and Calculus | 297 | |
Probability | 301 | |
B | The Mathematics of Rationalizability | 307 |
Dominance, Best Response, and Correlated Conjectures | 307 | |
Rationalizability Construction | 311 | |
Exercises | 313 | |
Index | 315 |
Go to: Problems with Patients or American Forests
Growth Management for a Sustainable Future: Ecological Sustainability as the New Growth Management Focus for the 21st Century
Author: Gabor Zovanyi
Argues that growth management in the United States is an institutionalized form of growth accommodation incongruous with sustainable behavior and that the growth accomodation imperative should be replaced by an imperative of ecological sustainability.
Booknews
After documenting the case for existing global limits to growth, the book takes the position that growth management programs must now be directed at efforts to stop growth. Chapters discuss the growth management context; the evolution of the growth management movement in the United States; the role of the planning profession in growth management; the role of the courts in shaping growth management efforts; and ecological sustainability as the new growth management focus. Annotation c. by Book News, Inc., Portland, Or.
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