This comprehensive textbook introduces readers to the principal ideas and applications of game theory, in a style that combines rigor with accessibility. Steven Tadelis begins with a concise description of rational decision making, and goes on to discuss strategic and extensive form games with complete information, Bayesian games, and extensive form games with imperfect information. He covers a host of topics, including multistage and repeated games, bargaining theory, auctions, rent-seeking games, mechanism design, signaling games, reputation building, and information transmission games. Unlike other books on game theory, this one begins with the idea of rationality and explores its implications for multiperson decision problems through concepts like dominated strategies and rationalizability. Only then does it present the subject of Nash equilibrium and its derivatives.
Game Theory is the ideal textbook for advanced undergraduate and beginning graduate students. Throughout, concepts and methods are explained using real-world examples backed by precise analytic material. The book features many important applications to economics and political science, as well as numerous exercises that focus on how to formalize informal situations and then analyze them.
- Introduces the core ideas and applications of game theory
- Covers static and dynamic games, with complete and incomplete information
- Features a variety of examples, applications, and exercises
- Topics include repeated games, bargaining, auctions, signaling, reputation, and information transmission
- Ideal for advanced undergraduate and beginning graduate students
- Complete solutions available to teachers and selected solutions available to students
"The book is enjoyable to read and truly an enrichment in game theory. It is widely well-structured and well-written and mathematically correct. The purpose is given perfectly. I recommend the book for researchers and graduate students who wants to get some insight in the area of game theory."--Sirma Zeynep, Zentralblatt MATH
"The book aims to be precise and rigorous, yet accessible and reader-friendly, and, to a great extent, it does hit these apparently conflicting targets. . . . The depth of the book is intermediate, with a conventional, yet clear, style of writing. It will please mainstream economists. . . . It can help advanced undergraduates and also students at honors or master's levels. It can also be used by PhD students seeking a fast, not so mathematized introduction to the field."--Jose Rodriques-Neto, Economic Record
"Steve Tadelis's Game Theory is an ideal textbook for advanced undergraduates, and great preparation for graduate work. It provides a clear, self-contained, and rigorous treatment of all the key concepts, along with interesting applications; it also introduces key technical tools in a straightforward and intuitive way."--Drew Fudenberg, Harvard University
"Steven Tadelis is a leading scholar in applied game theory, and his expertise shines through in this excellent new text. Aimed at intermediate to advanced undergraduates, it presents and discusses the theory remarkably clearly, at both the intuitive and formal levels. One novel feature I like is its serious consideration of the decision theoretic foundations of game theory. Another is its transparent presentation of relatively recent topics and applications, such as reputations in asymmetric information games, legislative bargaining, and cheap talk communication."--Steve Matthews, University of Pennsylvania
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