Readings in Games and Information / Edition 1

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This highly original collection brings together contemporary articles from a variety of sources to present the key topics in game theory. The book includes a combination of classic and contemporary readings from a range of books and journals that together present a complete resource for students and researchers of game theory.

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Product Details

  • ISBN-13: 9780631215578
  • Publisher: Wiley, John & Sons, Incorporated
  • Publication date: 5/30/2001
  • Series: Blackwell Readings for Contemporary Economics
  • Edition description: New Edition
  • Edition number: 1
  • Pages: 452
  • Product dimensions: 10.00 (w) x 7.00 (h) x 0.91 (d)

Meet the Author

Eric Rasmusen is Professor of Business Economics andPublic Policy and Sanjay Subhedar Faculty Fellow at IndianaUniversity, and has also held positions at UCLA, the University ofChicago, Harvard, and Yale. He has published in the areas ofanti-trust, industrial organization, political economy, law andeconomics, and game theory.

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Table of Contents

Pt. 1 The Rules of the Game
1 The Prisoner's Dilemma 5
2 A Two-Person Dilemma 7
3 Equilibrium Points in N-Person Games 9
4 Non-Cooperative Games 10
5 To Ensure High Prices, Some Haulers Have Been Known to Break the Rules 21
6 Cash Flow: 'Pay to Play' is Banned, But Muni-Bound Firms Keep the Game Going 23
7 School of Genius 28
8 Cartoon: Ratbert and Consultant 36
Pt. 2 Information
9 The Donation Booth 41
10 The Horatii and the Curiatii 46
11 TREES - A Decision-Maker's Lament 49
12 Knowing and Showing Economics and Law 50
13 Cartoon: "All Those in Favor, Say 'Aye'" 56
Pt. 3 Mixed and Continuous Strategies
14 Colonel Blotto: A Problem of Military Strategy 61
15 Dutch Accountants Take on a Formidable Task: Ferreting Out "Cheaters" in the Ranks of OPEC 64
16 Shipping Price-Fixing Pacts Hurt Consumers, Critics Say 66
17 The Conference Handbook 71
18 Cartoon: "Very Guilty" 74
Pt. 4 Dynamic Games with Symmetric Information
19 On An Application of Set Theory to the Theory of the Game of Chess 79
20 The Strategy of Conflict 83
21 Does the Fittest Necessarily Survive? 105
22 Shooting the Bird's Eye 109
23 Cartoon: "That's It? That's Peer Review?" 110
Pt. 5 Reputation and Repeated Games with Symmetric Information
24 The Evolution of Cooperation 114
25 This Tax Amnesty Will Work Only Once 129
26 Fare Warning: How Airlines Trade Price Plans 131
27 Starting Research Early 134
28 Cartoon: Einstein Discovers that Time is Actually Money 142
Pt. 6 Dynamic Games with Incomplete Information
29 Rational Cooperation in the Finitely Repeated Prisoners' Dilemma 147
30 Cheap Talk, Coordination, and Entry 154
31 Wise Guy: Life in a Mafia Family 161
32 Cartoon: "Say, I Think I See Where We Went Off ..." 164
Pt. 7 Moral Hazard: Hidden Actions
33 Monopoly Slack and Competitive Rigor: A Simple Model 169
34 An Optimal Conviction Policy for Offenses that May Have Been Committed by Accident 173
35 Bonded Worker in No Guarantee of a Perfect Job 182
36 Cartoon: "Look, Ted! We Get Paid the Same as You but All We're Doing is Standing Around and Flicking our Fingers" 184
Pt. 8 Further Topics in Moral Hazard
37 Wealth of Nations 188
38 Examples of Plea Bargains 189
39 Unions Say Auto Firms Use Interplant Rivalry to Raise Work Quotas 190
40 Cartoon: "Dilbert, I Want You to Manage Wally's Project While He's on Vacation in Aruba" 195
Pt. 9 Adverse Selection
41 The Market for "Lemons": Quality Uncertainty and the Market Mechanism 201
42 The Only Game in Town 214
43 Are Advertisers Ready to Pay Their Viewers? 218
44 The Creation of New Mathematics: An Application of the Lakatos Heuristic 221
45 Cartoon: Frank's Neurosurgery 226
Pt. 10 Mechanism Design in Adverse Selection and in Moral Hazard with Hidden Information
46 Tie Salesmen's Bonuses to Their Forecasts 230
47 Car-Buying Services Can Save Money, Especially for Those who Hate Haggling 241
48 How to Build an Economic Model in Your Spare Time 244
49 Cartoon: "Of Course That's Only an Estimate ..." 256
Pt. 11 Signalling
50 High and Declining Prices Signal Product Quality 261
51 The Argument of an Appeal 275
52 Cartoon: "Yes, but the Trouble is he Always Wears that Mysterious Smile" 283
Pt. 12 Bargaining
53 The Bargaining Problem 288
54 Perfect Equilibrium in a Bargaining Model 295
55 UPS Faces More Than $1 Billion of Year in New Labor Expenses: Pact Calls for Substantial Pay Increases, Full-Time Jobs and a Union Pension Plan 309
56 Cartoon: "Whatever Happened to Elegant Solutions?" 314
Pt. 13 Auctions
57 The Dollar Auction Game: A Paradox in Noncooperative Behavior and Escalation 318
58 Analyzing the Airwaves Auction 322
59 At Many Auctions, Illegal Bidding Thrives as a Longtime Practice Among Dealers 337
60 Cartoon: "The Next Item up for Bid is the Presidency of the United States ..." 340
Pt. 14 Pricing
61 Stability in Competition 345
62 The Mathematical Economics of Professor Amoroso 358
63 Existence and Computation of Mixed Strategy Nash Equilibrium for 3-Firms Location Problem 365
64 Busting a Trust: Electrical Contractors Reel Under Charges That They Rigged Bids 369
65 Cartoon: "Isn't it Great that We Don't Get Any More Pesky Calls during Dinner Asking us to Switch Long-Distance Companies?" 373
Pt. 15 Entry
66 The Fat-Cat Effect, the Puppy-Dog Poly, and the Lean and Hungry Look 378
67 Drugs: Novel Heart-Drug Deal Protects Sales, Spurs Suit 386
68 Aphorisms on Writing, Speaking, and Listening 389
69 Cartoon: Henry and the Candy Shop 421
Index 422
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