Game Theory
Drew Fudenberg and Jean Tirole
Thisadvanced text introduces the principles of noncooperative game theory -including strategic form games, Nash equilibria, subgame perfection,repeated games, and games of incomplete information - in a direct anduncomplicated style that will acquaint students with the broad spectrumof the field while highlighting and explaining what they need to knowat any given point. The analytic material is accompanied by manyapplications, examples, and exercises.
The theory of noncooperative games studies the behavior of agents inany situation where each agent's optimal choice may depend on aforecast of the opponents' choices. "Noncooperative" refers to choicesthat are based on the participant's perceived selfinterest. Althoughgame theory has been applied to many fields, Fudenberg and Tirole focuson the kinds of game theory that have been most useful in the study ofeconomic problems. They also include some applications to politicalscience. The fourteen chapters are grouped in parts that cover staticgames of complete information, dynamic games of complete information,static games of incomplete information, dynamic games of incompleteinformation, and advanced topics.
Drew Fudenberg and Jean Tirole are Professors of Economics at MIT.