Introduction to Game Theory

This free textbook provides an overview of the field of game theory which analyses decision situations that have the character of games. The book is eminently suitable in particular as introductory reading and is meant to sharpen the readers strategic thinking abilities. The understanding of game theory concepts and the introduced solution approaches can enlighten in nearly all areas of life after all, along with economics, it is not for nothing that game theory is applied in a huge number of disciplines, from sociology through politics and law to biology. Content 1. Foreword 2. Introduction 2.1. Aim and task of game theory 2.2. Applications of game theory 2.3. An example: the prisoner’s dilemma 2.4. Game theory terms 3. Simultaneous games 3.1. Foundations 3.2. Strategies 3.3. Equilibriums in pure strategies 3.4. Equilibriums in mixed strategies 3.5. Special forms of games 3.6. Simultaneous games in economics 3.7. -person games 4. Sequential games 4.1. Foundations 4.2. Terms 4.3. Subgames and subgame perfect equilibriums 4.4. Sequential games played simultaneously and Nash equilibriums 4.5. The First Mover’s Advantage (FMA) 4.6. An example: the Cuba crisis 5. Negotiations (cooperative games) 5.1. Foundations 5.2. Coalitions 5.3. The characteristic function 5.4. The cake game 5.5. Negotiations between two players 5.6. Distinguishing cooperative and non-cooperative games 6. Decisions under uncertainty 6.1. Modelling uncertainty 6.2. The utility function u(x) 6.3. The expected utility 7. Anomalies in game theory 7.1. Foundations 7.2. Games under uncertainty: the Ellsberg paradox 7.3. Games without uncertainty 8. References Sisältö Foreword Introduction Aim and task of game theory Applications of game theory An example: the prisoner’s dilemma Game theory terms Simultaneous games Foundations Strategies Equilibriums in pure strategies Equilibriums in mixed strategies Special forms of games Simultaneous games in economics -person games Sequential games Foundations Terms Subgames and subgame perfect equilibriums Sequential games played simultaneously and Nash equilibriums The First Mover’s Advantage (FMA) An example: the Cuba crisis Negotiations (cooperative games) Foundations Coalitions The characteristic function The cake game Negotiations between two players Distinguishing cooperative and non-cooperative games Decisions under uncertainty Modelling uncertainty The utility function u(x) The expected utility Anomalies in game theory Foundations Games under uncertainty: the Ellsberg paradox Games without uncertainty References This free textbook provides an overview of the field of game theory which analyses decision situations that have the character of games. The book is eminently suitable in particular as introductory reading and is meant to sharpen the reader’s strategic thinking abilities. You can download the book via the link below. This free textbook provides an overview of the field of game theory which analyses decision situations that have the character of games. You can download the book for free via the link below.