1st Edition

Introduction to Game Theory in Business and Economics

By Thomas J. Webster Copyright 2009

    Game theory is the study of strategic behavior in situations in which the decision makers are aware of the interdependence of their actions. This innovative textbook introduces students to the most basic principles of game theory - move and countermove - with an emphasis on real-world business and economic applications. Students with a background in principles of economics and business mathematics can readily understand most of the material.Demonstration problems in each chapter are designed to enhance the student's understanding of the concepts presented in the text. Many chapters include non-technical applications designed to further the student's intuitive understanding of strategic behavior. Case studies help underscore the usefulness of game theory for analyzing real-world situations. Each chapter concludes with a review and questions and exercises. An online Instructor's Manual with test bank is available to professors who adopt the text.

    List of Figures and Tables; Acknowledgments; A Note to Students and Instructors; 1. Introduction to Game Theory; 2. Noncooperative, One-time, static Games with Complete Information; 3. Focal-Point and Evolutionary Equilibria; 4. Infinitely-Repeated, Static Games with Complete Information; 5. Finitely-Repeated, Static Games with Complete Information; 6. Mixing Pure Strategies; 7. Static Games with Continuous Strategies; 8. Imperfect Competition; 9. Perfect Competition and Monopoly; 10. Strategic Trade Policy; 11. Dynamic Games with Complete and Perfect Information; 12. Bargaining; 13. Pure Strategies with Uncertain Payoffs; 14. Torts and Contracts; 15. Auctions; 16. Dynamic Games with Incomplete Information; Notes; Glossary of Terms and Concepts; References and Suggestions for Further Reading; Index.


    Thomas J. Webster