Table Of Contents:
Preface xi

Introduction 1(8)

Game Theory 1(1)

Games and Solutions 2(1)

Game Theory and the Theory of Competitive Equilibrium 3(1)

Rational Behavior 4(1)

The Steady State and Deductive Interpretations 5(1)

Bounded Rationality 6(1)

Terminology and Notation 6(3)

Notes 8(1)
I Strategic Games 9(78)

Nash Equilibrium 11(20)

Strategic Games 11(3)

Nash Equilibrium 14(1)

Examples 15(4)

Existence of a Nash Equilibrium 19(2)

Strictly Competitive Games 21(3)

Bayesian Games: Strategic Games with Imperfect Information 24(7)

Notes 29(2)

Mixed, Correlated, and Evolutionary Equilibrium 31(22)

Mixed Strategy Nash Equilibrium 31(6)

Interpretations of Mixed Strategy Nash Equilibrium 37(7)

Correlated Equilibrium 44(4)

Evolutionary Equilibrium 48(5)

Notes 51(2)

Rationalizability and Iterated Elimination of Dominated Actions 53(14)

Rationalizability 53(5)

Iterated Elimination of Strictly Dominated Actions 58(4)

Iterated Elimination of Weakly Dominated Actions 62(5)

Notes 64(3)

Knowledge and Equilibrium 67(20)

A Model of Knowledge 67(6)

Common Knowledge 73(2)

Can People Agree to Disagree? 75(1)

Knowledge and Solution Concepts 76(5)

The Electronic Mail Game 81(6)

Notes 84(3)
II Extensive Games with Perfect Information 87(110)

Extensive Games with Perfect Information 89(28)

Extensive Games with Perfect Information 89(8)

Subgame Perfect Equilibrium 97(4)

Two Extensions of the Definition of a Game 101(2)

The Interpreation of a Strategy 103(2)

Two Notable Finite Horizon Games 105(3)

Iterated Elimination of Weakly Dominated Strategies 108(9)

Notes 114(3)

Bargaining Games 117(16)

Bargaining and Game Theory 117(1)

A Bargaining Game of Alternating Offers 118(3)

Subgame Perfect Equilibrium 121(6)

Variations and Extensions 127(6)

Notes 131(2)

Repeated Games 133(30)

The Basic Idea 133(1)

Infinitely Repeated Games vs. Finitely Repeated Games 134(2)

Infinitely Repeated Games: Definitions 136(4)

Strategies as Machines 140(3)

Trigger Strategies: Nash Folk Theorems 143(3)

Punishing for a Limited Length of Time: A Perfect Folk Theorem for the Limit of Means Criterion 146(3)

Punishing the Punisher: A Perfect Folk Theorem for the Overtaking Criterion 149(1)

Rewarding Players Who Punish: A Perfect Folk Theorem for the Discounting Criterion 150(3)

The Structure of Subgame Perfect Equilibria Under the Discounting Criterion 153(2)

Finitely Repeated Games 155(8)

Notes 160(3)

Complexity Considerations in Repeated Games 163(14)

Introduction 163(1)

Complexity and the Machine Game 164(4)

The Structure of the Equilibria of a Machine Game 168(4)

The Case of Lexicographic Preferences 172(5)

Notes 175(2)

Implementation Theory 177(20)

Introduction 177(1)

The Implementation Problem 178(2)

Implementation in Dominant Strategies 180(5)

Nash Implementation 185(6)

Subgame Perfect Equilibrium Implementation 191(6)

Notes 195(2)
III Extensive Games with Imperfect Information 197(58)

Extensive Games with Imperfect Information 199(20)

Extensive Games with Imperfect Information 199(5)

Principles for the Equivalence of Extensive Games 204(5)

Framing Effects and the Equivalence of Extensive Games 209(3)

Mixed and Behavioral Strategies 212(4)

Nash Equilibrium 216(3)

Notes 217(2)

Sequential Equilibrium 219(36)

Strategies and Beliefs 219(3)

Sequential Equilibrium 222(9)

Games with Observable Actions: Perfect Bayesian Equilibrium 231(12)

Refinements of Sequential Equilibrium 243(3)

Trembling Hand Perfect Equilibrium 246(9)

Notes 254(1)
IV Coalitional Games 255(58)

The Core 257(20)

Coalitional Games with Transferable Payoff 257(1)

The Core 258(4)

Nonemptiness of the Core 262(1)

Markets with Transferable Payoff 263(5)

Coalitional Games without Transferable Payoff 268(1)

Exchange Economies 269(8)

Notes 274(3)

Stable Sets, the Bargaining Set, and the Shapley Value 277(22)

Two Approaches 277(1)

The Stable Sets of von Neumann and Morgenstern 278(3)

The Bargaining Set, Kernel, and Nucleolus 281(8)

The Shapley Value 289(10)

Notes 297(2)

The Nash Solution 299(14)

Bargaining Problems 299(2)

The Nash Solution: Definition and Characterization 301(4)

An Axiomatic Definition 305(5)

The Nash Solution and the Bargaining Game of Alternating Offers 310(1)

An Exact Implementation of the Nash Solution 311(2)

Notes 312(1)
List of Results 313(8)
References 321(20)
Index 341