Game Theory for Applied Economists

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Princeton University Press, Jul 13, 1992 - Business & Economics - 288 pages
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This book introduces one of the most powerful tools of modern economics to a wide audience: those who will later construct or consume game-theoretic models. Robert Gibbons addresses scholars in applied fields within economics who want a serious and thorough discussion of game theory but who may have found other works overly abstract. Gibbons emphasizes the economic applications of the theory at least as much as the pure theory itself; formal arguments about abstract games play a minor role. The applications illustrate the process of model building--of translating an informal description of a multi-person decision situation into a formal game-theoretic problem to be analyzed. Also, the variety of applications shows that similar issues arise in different areas of economics, and that the same game-theoretic tools can be applied in each setting. In order to emphasize the broad potential scope of the theory, conventional applications from industrial organization have been largely replaced by applications from labor, macro, and other applied fields in economics. The book covers four classes of games, and four corresponding notions of equilibrium: static games of complete information and Nash equilibrium, dynamic games of complete information and subgame-perfect Nash equilibrium, static games of incomplete information and Bayesian Nash equilibrium, and dynamic games of incomplete information and perfect Bayesian equilibrium.


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Static Games of Complete Information
Dynamic Games of Complete Information
Static Games of Incomplete Information
Dynamic Games of Incomplete Information

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About the author (1992)

Robert Gibbons' work transcends genres. Living body writing, what difference, if Truth comes out? And gives readers pleasure. Both Guy Davenport and Marjorie Perloff compared his work to Rimbaud's. Sam Hamill wrote, "Anyone familiar with Thelonius Monk's music cannot help but feel the quirky syncopations of Gibbons' mind fitting perfectly with those of the pianist." At 65-years-old, he's still walking around the waterfront taking in the world, or at the desk in the backroom writing, often peering underneath for the Feminine*. *Voice of Silence, image of the Hidden, embodiment of Beauty, signature of Peace, source of Love, etc.

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