Strategies and Games: Theory and Practice

Game theory has become increasingly popular among undergraduate as well as businessschool students. This text is the first to provide both a complete theoretical treatment of thesubject and a variety of real-world applications, primarily in economics, but also in business,political science, and the law. Strategies and Games grew out of Prajit Dutta's experience teachinga course in game theory over the last six years at Columbia University.The book is divided intothree parts: Strategic Form Games and Their Applications, Extensive Form Games and TheirApplications, and Asymmetric Information Games and Their Applications. The theoretical topicsinclude dominance solutions, Nash equilibrium, backward induction, subgame perfect equilibrium,repeated games, dynamic games, Bayes-Nash equilibrium, mechanism design, auction theory, andsignaling. An appendix presents a thorough discussion of single-agent decision theory, as well asthe optimization and probability theory required for the course.Every chapter that introduces a newtheoretical concept opens with examples and ends with a case study. Case studies include GlobalWarming and the Internet, Poison Pills, Treasury Bill Auctions, and Final Jeopardy. Each part of thebook also contains several chapter-length applications including Bankruptcy Law, the NASDAQ market,OPEC, and the Commons problem. This is also the first text to provide a detailed analysis of dynamicstrategic interaction.
Game theory has become increasingly popular among undergraduate aswell as businessschool students. This text is the first to provideboth a complete theoretical treatment of thesubject and a variety ofreal-world applications, primarily in economics, but also inbusiness,political science, and the law.