Game Theory, livre ebook

From its beginnings in the early 1900s, game theory has been a very mathematical, technical subject. However, it also provides valuable, everyday lessons that are important for managers and executives to understand. But current books and textbooks are mostly highly mathematical, and almost all are very long. This book will deliver a focused and precise, but nonmathematical, overview of topics in game theory that are directly relevant to managing an organization. Game theory is the science of action and reaction. While most standard economic analyses embody the science of making an optimal choice, this kind of analysis is largely undertaken in a vacuum. For example, when a firm raises or lowers its price, this is rarely the end of the story—competitors are likely to react by changing their prices and quantities as well. Game theory adds in this extra layer of realism. It teaches managers to think ahead and foresee possible reactions to their actions.
Preface .........................................................................................................ix
Chapter 1 Introduction to Game Th eory .................................................1
Part I Simultaneous and Sequential Games
with Perfect Information ............................................... 9
Chapter 2 How to “Solve” a Game I: Simultaneous,
One-Shot Games ................................................................. 11
Chapter 3 Standard Game Types ........................................................... 21
Chapter 4 Larger Games and Refi nements to Nash Equilibrium.......... 33
Chapter 5 How to Solve a Game II: Sequential Games ........................ 45
Chapter 6 Repeated Games and Cooperation ....................................... 57
Part II Information and Other Games .................................... 65
Chapter 7 Th e Th eory of Contracts: Introduction to Moral
Hazard and Adverse Selection .............................................. 67
Chapter 8 Corporate Games I: Games Against Your Customers .......... 77
Chapter 9 Corporate Games II: Games Against Your Employees ......... 87
Chapter 10 Corporate Games III: Games Against the Competition ....... 99
Chapter 11 Building Cooperation in Teams ......................................... 109
Chapter 12 Games Against Yourself ...................................................... 115
Index ....................................................................................................... 121