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Game Theory

Game Theory Theodore L. TurocyTexas A&M UniversityBernhard von StengelLondon School of EconomicsCDAM Research Report LSE-CDAM-2001-09 October 8, 2001 Contents1 What is game Theory ?42 Definitions of games63 Dominance84 Nash equilibrium125 Mixed strategies176 Extensive games with perfect information227 Extensive games with imperfect information298 Zero-sum games and computation339 Bidding in auctions3410 Further reading38 This is the draft of an introductory survey of game Theory , prepared for theEncyclopedia of InformationSystems, Academic Press, to appear in inductionBackward induction is a technique to solve a game of perfect information.

provide a language to formulate, structure, analyze, and understand strategic scenarios. History and impact of game theory The earliest example of a formal game-theoretic analysis is the study of a duopoly by Antoine Cournot in 1838. The mathematician Emile Borel …

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