Strategies and Games, second edition
Theory and Practice
The new edition of a widely used introduction to game theory and its applications, with a focus on economics, business, and politics.
This widely used introduction to game theory is rigorous but accessible, unique in its balance between the theoretical and the practical, with examples and applications following almost every theory-driven chapter. In recent years, game theory has become an important methodological tool for all fields of social sciences, biology and computer science. This second edition of Strategies and Games not only takes into account new game theoretical concepts and applications such as bargaining and matching, it also provides an array of chapters on game theory applied to the political arena. New examples, case studies, and applications relevant to a wide range of behavioral disciplines are now included. The authors map out alternate pathways through the book for instructors in economics, business, and political science.
The book contains four parts: strategic form games, extensive form games, asymmetric information games, and cooperative games and matching. Theoretical topics include dominance solutions, Nash equilibrium, Condorcet paradox, backward induction, subgame perfection, repeated and dynamic games, Bayes-Nash equilibrium, mechanism design, auction theory, signaling, the Shapley value, and stable matchings. Applications and case studies include OPEC, voting, poison pills, Treasury auctions, trade agreements, pork-barrel spending, climate change, bargaining and audience costs, markets for lemons, and school choice. Each chapter includes concept checks and tallies end-of-chapter problems. An appendix offers a thorough discussion of single-agent decision theory, which underpins game theory.
“Writing in a style that is at once rigorous and reader-friendly, Dutta and Vergote provide an excellent introduction to game theory. Key concepts are carefully developed and illustrated with a range of interesting applications to economics, politics, and business.”
Kyle Bagwell, Donald L. Lucas Endowed Professor in Economics, Stanford University
“This great book is useful to all who wonder what game theory is about. It covers both cooperative and non-cooperative theory, and is full of applications, case studies, and exercises. Highly recommended.”
Gabrielle Demange, Professor, Paris School of Economics
“This outstanding text admirably conveys both the analytical power and intellectual joy of game theory.”
Sean Gailmard, Professor of Political Science, University of California, Berkeley