GAME THEORY An open access textbook with 165 solved exercise 1st Edition by Giacomo Bonanno

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Author: Giacomo Bonanno

After teaching game theory (at both the undergraduate and graduate level) at the University of California, Davis for 25 years, the author decided to organize all his teaching material in a textbook. There are many excellent textbooks in game theory and there is hardly any need for a new one. However, there are two distinguishing features of this textbook: (1) it is open access and thus free, and (2) it contains an unusually large number of exercises (a total of 165) with complete and detailed answers.

The author tried to write the book in such a way that it would be accessible to anybody with minimum knowledge of mathematics (high-school level algebra and some elementary notions of probability) and no prior knowledge of game theory. However, the book is intended to be rigorous and it includes several proofs. The author believes it is appropriate for an advanced undergraduate class in game theory and also for a first-year graduate-level class.

GAME THEORY An open access textbook with 165 solved exercise 1st Edition Table of contents:

Part I: Introduction to Game Theory

1. Introduction to Game Theory

   • Definition and Importance of Game Theory
   • Key Concepts: Players, Strategies, and Payoffs
   • Types of Games: Cooperative vs. Non-Cooperative
   • Applications of Game Theory

2. The Structure of a Game

   • Normal-Form Games
   • Extensive-Form Games
   • Mixed Strategies
   • Information Sets and Incomplete Information

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Part II: Fundamental Concepts in Game Theory

3. Dominance and Nash Equilibrium

   • Dominated Strategies and Iterated Elimination
   • Nash Equilibrium in Pure and Mixed Strategies
   • Existence of Nash Equilibrium
   • Applications in Economic and Strategic Decision Making

4. Game Theory and Rationality

   • Rational Players and Decision Making
   • Bounded Rationality and Behavioral Game Theory
   • The Role of Trust and Reciprocity in Games
   • Applications of Rational Decision Making in Economics

5. Subgame Perfect Equilibrium

   • Subgame Perfect Equilibrium in Extensive-Form Games
   • Backward Induction and Perfect Information Games
   • Applications to Bargaining and Negotiations
   • Solved Exercise: Backward Induction in a Sequential Game

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Part III: Advanced Topics in Game Theory

6. Repeated Games and Folk Theorems

   • Repeated Games: Infinite vs. Finite Horizon
   • The Folk Theorem and Cooperation in Repeated Games
   • Applications in International Trade and Long-Term Business Relationships
   • Solved Exercise: Cooperation in Repeated Prisoner’s Dilemma

7. Bargaining and Cooperative Games

   • The Nash Bargaining Solution
   • Cooperative Game Theory and Coalitions
   • Core and Shapley Value
   • Applications to Labor Negotiations and Political Coalitions

8. Games with Incomplete Information

   • Bayesian Games and Bayesian Nash Equilibrium
   • Signaling and Screening in Incomplete Information Games
   • Auctions and Information Revelation
   • Solved Exercise: Analyzing Auctions with Incomplete Information

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Part IV: Special Topics and Applications

9. Evolutionary Game Theory

   • Evolutionarily Stable Strategies (ESS)
   • Replicator Dynamics and Evolutionary Stability
   • Applications in Biology and Sociology
   • Solved Exercise: Evolution of Cooperation in Prisoner’s Dilemma

10. Mechanism Design and Auctions

• Introduction to Mechanism Design
• Auctions: Vickrey, English, and Dutch Auctions
• Incentive Compatibility and Truthful Mechanisms
• Solved Exercise: Designing Efficient Auctions

11. Applications in Political Science

• Voting Systems and Electoral Strategies
• Conflict and Cooperation in International Relations
• Public Goods and Collective Action Problems
• Solved Exercise: Modeling Voting Systems with Game Theory

12. Game Theory in Computer Science

• Algorithmic Game Theory and Computational Complexity
• Game Theory in Network Design and Security
• Mechanism Design for the Internet
• Solved Exercise: Algorithmic Applications of Game Theory

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Part V: Practical Problem Solving with Game Theory

13. Strategic Interaction and Decision Making

• Modeling Strategic Interactions in Business and Economics
• Decision Trees and Payoff Matrices
• Solved Exercise: Decision Making in Competitive Markets

14. Solving Real-World Problems with Game Theory

• Case Studies in Economics, Politics, and Social Behavior
• Simulations and Real-Life Applications of Game Theory
• Solved Exercise: Application of Game Theory in Environmental Policy

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