An Introduction to Game Theory by Martin J. Osborne provides a comprehensive overview of game theory concepts, including rational choice theory and Nash equilibrium. This text explores strategic games through various examples such as the Prisoner's Dilemma and the Stag Hunt. Published by Oxford University Press in 2003, it serves as a foundational resource for students and professionals in economics and social sciences. The book delves into applications of game theory in real-world scenarios, including auctions and jury decision-making. Ideal for those studying economics or seeking to understand strategic interactions in competitive environments.

Key Points

  • Explains the fundamental concepts of game theory, including rational choice and Nash equilibrium.
  • Covers strategic games with examples like the Prisoner's Dilemma and Stag Hunt.
  • Discusses real-world applications of game theory in auctions and decision-making.
  • Includes a historical overview of game theory and its key contributors.
Kavya Mittal
Author:Martin J. Osborne
Edition:2003
685 pages
Language:English
Type:Textbook
Accounting
Kavya Mittal
Author:Martin J. Osborne
Edition:2003
685 pages
Language:English
Type:Textbook
Accounting
417
/ 685
Selected chapters from draft of
An Introduction to Game Theory
by
Martin J. Osborne
Please send comments to
Martin J. Osborne
Department of Economics
150 St. George Street
University of Toronto
Toronto, Canada M5S 3G7
email: martin.osborne@utoronto.ca
This version: 2000/11/6
Copyright
c
1995–2000 by Martin J. Osborne
All rights reserved. No part of this book may be reproduced by any electronic or mechanical means
(including photocopying, recording, or information storage and retrieval) without permission in
writing from Oxford University Press.
Contents
Preface xiii
1 Intro duction 1
1.1 What is game theory? 1
An outline of the history of game theory 3
John von Neumann 3
1.2 The theory of rational choice 4
1.3 Coming attractions 7
Notes 8
I Games with Perfect Information 9
2 Nash Equilibrium: Theory 11
2.1 Strategic games 11
2.2 Example: the Prisoner’s Dilemma 12
2.3 Example: Bach or Stravinsky? 16
2.4 Example: Matching Pennies 17
2.5 Example: the Stag Hunt 18
2.6 Nash equilibrium 19
John F. Nash, Jr. 20
Studying Nash equilibrium experimentally 22
2.7 Examples of Nash equilibrium 24
Experimental evidence on the Prisoner’s Dilemma 26
Focal points 30
2.8 Best response functions 33
2.9 Dominated actions 43
2.10 Equilibrium in a single population: symmetric games and symmetric
equilibria 49
Notes 51
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FAQs

What are the main concepts covered in An Introduction to Game Theory?
An Introduction to Game Theory covers essential concepts such as rational choice theory, Nash equilibrium, and strategic games. The text provides detailed examples, including the Prisoner's Dilemma and the Stag Hunt, to illustrate these concepts. It also discusses the implications of game theory in various fields, including economics and social sciences, making it a valuable resource for understanding strategic interactions.
How does the book explain Nash equilibrium?
The book explains Nash equilibrium as a key concept in game theory where no player can benefit by changing their strategy while the other players keep theirs unchanged. It illustrates this concept through examples of strategic games, helping readers understand how equilibrium can be achieved in competitive scenarios. The text emphasizes the importance of Nash equilibrium in predicting outcomes in various strategic situations.
What real-world applications of game theory are discussed?
An Introduction to Game Theory discusses several real-world applications, including the use of game theory in auctions, where companies bid for licenses. The book examines how game theorists advise bidders to optimize their strategies. Additionally, it explores jury decision-making processes, illustrating how jurors interpret evidence and make decisions based on strategic considerations.
Who is the intended audience for this book?
The intended audience for An Introduction to Game Theory includes students and professionals in economics, social sciences, and related fields. It serves as a foundational text for those looking to understand game theory concepts and their applications. The book is suitable for both beginners and those with some prior knowledge of the subject, making it a versatile resource.
What historical context does the book provide about game theory?
The book provides a historical overview of game theory, tracing its development and key contributors, such as John von Neumann. It outlines how game theory has evolved over time and its significance in various disciplines. This context helps readers appreciate the foundational principles of game theory and its relevance in contemporary research and applications.

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