Preface 17
Suggestions for Instructors 25
1 Game Theory: A Lexicon for Strategic Interaction 33
1.1 Introduction........................ 33
1.2 BigMonkeyandLittleMonkey ............. 33
1.3 TheExtensiveFormGame................ 39
1.4 TheNormalFormGame................. 42
1.5 NashEquilibrium..................... 43
1.6 ReviewingtheTerminology ............... 44
2 Leading from Strength: Playing Dominant Strategies 46
2.1 Introduction........................ 46
2.2 DominantStrategies ................... 46
2.3 Backward Induction: Pruning the Game Tree . .... 47
2.4 EliminatingDominatedStrategies............ 49
2.5 DominatedStrategies:ConceptsandDenitions.... 49
2.6 ThePrisoner’sDilemma ................. 50
2.7 AnArmamentsGame .................. 50
2.8 SecondPriceAuction................... 51
2.9 TheLandlordandtheEvictionNotice ......... 51
2.10 Hagar’s Battles . ..................... 52
2.11AnIncreasingBidAuction................ 52
2.12FootballStrategy ..................... 52
2.13 A Military Strategy Game . . .............. 52
2.14StrategicVoting...................... 53
2.15TheDebtorandHisCreditors.............. 54
2.16 Eliminating Dominated Strategies ad Absurdum .... 54
2.17PokerwithBlung.................... 55
2.18TheCentipedeGame................... 56
3 Playing it Straight: Pure Strategy Nash Equilibria 58
3.1 Introduction........................ 58
3.2 PureCoordinationGames ................ 59
3.3 CompetitiononMainStreet............... 60
3.4 APureCoordinationGame ............... 60
3.5 TwinSisters........................ 60
3.6 VariationsonDuopoly .................. 61
3.7 TheTobaccoMarket ................... 62
3.8 TheWeWillNotBeUndersoldGame ......... 62
3.9 TheKlingonsandtheSnarks .............. 63
3.10Chess|TheTrivialPastime ............... 64
3.11TheSamaritan’sDilemma ................ 64
3.12TheRottenKidTheorem ................ 65
3.13TheIllogicofConflictEscalation ............ 66
3.14HowtoValueLotteries.................. 67
3.14.1Where’sJack? .................... 68
3.15 The Expected Utility Principle . . . . . . . ...... 68
3.16BuyingFireInsurance .................. 69
3.17NeoclassicalEconomicsandGameTheory ....... 70
3.18 Markets as Disciplining Devices: Allied Widgets . . . . 73
3.19TheTruthGame ..................... 78
3.20TheShopperandtheFishMerchant .......... 79
3.21CommonKnowledge ................... 80
3.22TheWomenofSevitan.................. 80
4 Catching ’em O Guard: Mixed Strategy Nash Equilib-
ria 82
4.1 Introduction........................ 82
4.2 MixedStrategies:BasicDenitions ........... 83
4.3 The Fundamental Theorem of Mixed Strategy Nash
Equilibrium ........................ 84
4.4 SolvingforMixedStrategyNashEquilibria ...... 85
4.5 ReviewingtheTerminology ............... 86
4.6 BigMonkeyandLittleMonkeyRevisited........ 87
4.7 DominanceRevisted ................... 87
4.8 CompetitiononMainStreetRevisited ......... 87
4.9 BattleoftheSexes .................... 87
4.10ThrowingFingers..................... 88
4.11One-card,Two-roundPokerwithBlung ....... 88
4.11.1 SimulatingOne-cardTwo-roundBlu ....... 89
4.12BehavioralStrategiesinExtensiveFormGames.... 90
4.13LionsandAntelope.................... 92
4.14 The Santa F eBar..................... 93
4.15 Orange-Throat, Blue-Throat and Yellow-Striped Lizards 94
4.16SexRatiosasNashEquilibria .............. 95
4.17TennisStrategy...................... 96
4.18AMatingGame...................... 97
4.19HardLove......................... 98
4.20CoordinationFailureI .................. 98
4.21AdvertisingGame..................... 98
4.22PreservationofEcologyGame.............. 99
4.23ColonelBlottoGame................... 99
4.24NumberGuessingGame .................100
4.25TargetSelection......................100
4.26AReconnaissanceGame .................101
4.27AttackonHiddenObject.................101
4.28Two-PersonZero-SumGames ..............102
4.29 An Introduction to Forward Induction . . . . . ....103
4.30 Mutual Monitoring and Cooperation in a Partnership . 104
4.31MutualMonitoringandCooperationinTeams.....105
4.32Altruism(?)inBirdFlocks................106
4.33RobinHoodandLittleJohn...............107
4.34TheMotorist’sDilemma .................107
4.35FamilyPolitics ......................108
4.36FrankieandJohnny....................108
4.37ACardGame.......................108
4.38Cheater-Inspector.....................109
4.39TheGrouchoMarxGame ................109
4.40RealMenDon’tEatQuiche ...............110
4.41TheVindicationoftheHawk ..............111
4.42CorrelatedEquilibria...................112
4.43PokerwithBlungRevisited ..............114
4.44 The Equivalence of Behavioral and Mixed Strategies . 114
5 Moving Through the Game Tree: Subgame Perfection,
Incredible Threats, and Trembling Hands 117
5.1 Introduction........................117
5.2 SubgamePerfection....................119
5.3 StackelbergLeadership..................122
5.4 TheSubwayEntryDeterrenceGame ..........123
5.5 TheDr.StrangeloveGame................123
5.6 The St ahl-RubinsteinBargainingModel ........124
5.7 Huey,Dewey,andLouisSplitaDollar .........126
5.8 TheLittleMissMuetGame ..............126
5.9 NuisanceSuits.......................127
5.10 Cooperation in an Overlapping Generations Economy . 129
5.11TheFinitelyRepeatedPrisoner’sDilemma.......130
5.12 The Finitely Repeated Prisoner’s Dilemma: the Fine
Points ...........................136
5.13FuzzySubgamePerfection................137
5.14 Perfect Behavioral Nash Equilibria and Bayesian Up-
dating ...........................139
5.15Selten’sHorse.......................141
5.16TremblingHandPerfection................142
5.17 Nature Abhors Low Probability Events . . . ......143
6 Repeated Games, Trigger Strategies, and Tacit Collu-
sion 145
6.1 Introduction........................145
6.2 BigFishandLittleFish .................146
6.3 TacitCollusion ......................148
6.4 The Folk Theorem: An Embarr asdeRichesses.....153
6.5 VariationsontheFolkTheorem.............154
6.6 TheOneStageDeviationPrinciple ...........156
6.7 A Trembling Hand, Repeated Game, Cooperative
Equilibrium ........................156
6.8 Death and Discount Rates in Repeated Games . . . . 158
6.9 MannyandMoe......................158
6.10TheStrategyofanOilCartel ..............158
6.11Tit-for-Tat.........................159
6.12APublicGoodsExperiment...............160
6.13ReputationalEquilibrium ................161
6.14ContingentRenewalContracts..............161
6.14.1 Costless Contract Enforcement: Achilles’ Heel of
NeoclassicalEconomics ...............163
6.14.2 Contingent Renewal Markets Do Not Clear in
Equilibrium......................163
6.14.3MoneyConfersShort-sidePower ..........166
6.14.4WhenMoneyTalks,PeopleListen .........166
6.14.5 The Economy is Controlled by the Wealthy . . . . 167
6.15ContingentRenewalLaborMarkets...........167
6.16I’dRatherSwitchthanFight ..............171
7 Biology Meets Economics: Evolutionary Stability and
the Origins of Dynamic Game Theory 175
7.1 The Origins of Evolutionary Stability . . . . . . ....175
7.2 PropertiesofEvolutionaryStableStrategies ......176
7.3 When are Evolutionarily Stable Strategies Unbeatable? 179
7.4 CooperativeFishing ...................179
7.5 A Nash Equilibrium that is not Evolutionarily Stable . 180
7.6 Rock, Paper, and Scissors is not Evolutionarily Stable 180
7.7 SexRatiosasEvolutionaryStableStrategies......181
7.8 InvasionofthePureStrategyMutants .........181
7.9 MultipleEvolutionaryStableStrategies ........181
7.10TheLogicofAnimalConflict ..............182
7.11Hawks,DovesandBourgeois...............185
7.12TrogsandFarfel......................185
7.13 Evolutionary Stability in Finite Populations . . ....187
7.14 Evolutionary Stability in Asymmetric Games . ....188



雷达卡





京公网安备 11010802022788号







