Rationality In Extensive Form Games

Download or read book Rationality in Extensive Form Games written by Andrés Perea and published by Springer Science & Business Media. This book was released on 2001-10-31 with total page 256 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book is concerned with situations in which several persons reach decisions independently and the final consequence depends, potentially, upon each of the decisions taken. Such situations may be described formally by an extensive form game: a mathematical object which specifies the order in which decisions are to be taken, the information available to the decision makers at each point in time, and the consequence that results for each possible combination of decisions. A necessary requirement for rational behavior in such games is that each decision maker should reach a decision that is optimal, given his preferences over his own decisions. This requirement is far from sufficient, however, since every decision maker should in addition base his preferences upon the conjecture that his opponents will act optimally as well. It is this principle that distinguishes noncooperative game theory from one-person decision theory. The main purpose of Rationality in Extensive Form Games is to discuss different formalizations of this principle in extensive form games, such as backward induction, Nash equilibrium, forward induction and rationalizability, under the assumption that the decision makers' preferences are given by subjective expected utility functions. The various formalizations, or rationality criteria, are illustrated by examples, and the relationships among the different criteria are explored.

Download or read book Epistemic Game Theory written by Andrés Perea and published by Cambridge University Press. This book was released on 2012-06-07 with total page 581 pages. Available in PDF, EPUB and Kindle. Book excerpt: The first textbook to explain the principles of epistemic game theory.

Download or read book Rationality in Extensive Form Games written by Andrés Perea and published by Springer Science & Business Media. This book was released on 2013-04-18 with total page 245 pages. Available in PDF, EPUB and Kindle. Book excerpt: I would like to use this preface to thank some persons and institutions which have been important during the various stages of writing this book. First of all, I am grateful to Kluwer Academic Publishers for giving me the opportunity to write this book. I started writing the book in 1998 while I was working at the Departament d'Economia i d'Historia Economica at Universidad Autonoma de Barcelona, and continued the writing job from september 1998 to september 2000 at the Departamento de Economfa at Universidad Carlos III de Madrid. The book has been completed while I was visiting the Department of Quantitative Economics at the University of Maastricht from october 2000 to august 2001. I wish to thank these three departments for their hospitality. The book has improved substantially by comments and critique from the following persons who have read parts of the manuscript: Geir Asheim, Eric van Damme, Janos Flesch, Mari-Angeles de Frutos, Diego Moreno, Hans Peters, Antonio Romero and Dries Vermeulen. I should also mention my discussions with Peter Wakker about the decision-theoretic foundations of noncooperative game theory, which have had an important impact on various parts of the book. Finally, I wish to express my warmest gratitude to my parents, my brother and my sister, and, last but not least, to Cati, to whom I dedicate this book.

Download or read book Game Theory written by Steve Tadelis and published by Princeton University Press. This book was released on 2013-01-06 with total page 416 pages. Available in PDF, EPUB and Kindle. Book excerpt: The definitive introduction to game theory This comprehensive textbook introduces readers to the principal ideas and applications of game theory, in a style that combines rigor with accessibility. Steven Tadelis begins with a concise description of rational decision making, and goes on to discuss strategic and extensive form games with complete information, Bayesian games, and extensive form games with imperfect information. He covers a host of topics, including multistage and repeated games, bargaining theory, auctions, rent-seeking games, mechanism design, signaling games, reputation building, and information transmission games. Unlike other books on game theory, this one begins with the idea of rationality and explores its implications for multiperson decision problems through concepts like dominated strategies and rationalizability. Only then does it present the subject of Nash equilibrium and its derivatives. Game Theory is the ideal textbook for advanced undergraduate and beginning graduate students. Throughout, concepts and methods are explained using real-world examples backed by precise analytic material. The book features many important applications to economics and political science, as well as numerous exercises that focus on how to formalize informal situations and then analyze them. Introduces the core ideas and applications of game theory Covers static and dynamic games, with complete and incomplete information Features a variety of examples, applications, and exercises Topics include repeated games, bargaining, auctions, signaling, reputation, and information transmission Ideal for advanced undergraduate and beginning graduate students Complete solutions available to teachers and selected solutions available to students

Download or read book The Theory of Learning in Games written by Drew Fudenberg and published by MIT Press. This book was released on 1998 with total page 304 pages. Available in PDF, EPUB and Kindle. Book excerpt: This work explains that equilibrium is the long-run outcome of a process in which non-fully rational players search for optimality over time. The models they e×plore provide a foundation for equilibrium theory and suggest ways for economists to evaluate and modify traditional equilibrium concepts.

Download or read book Models of Strategic Rationality written by Reinhard Selten and published by Springer Science & Business Media. This book was released on 2013-03-09 with total page 319 pages. Available in PDF, EPUB and Kindle. Book excerpt: The papers collected in this volume relate to game theory. They aim at the elaboration and discussion of basic con cepts, at the analysis of specific applied models and at the evaluation of experimental evidence. A game is a mathematical model of a situation where several actors with different goals are engaged in strategic inter action. Game theory explores the nature and the consequence. s of rational behavior in games. With respect to several papers in this volume, it seems to be appropriate to comment on later developments. A list of some important references is given at the end of the intro duction. References already included in the collected pa pers are not repeated here. In casual conversation colleagues sometimes observe that the author on the one hand goes to extremes in the elabora tion of the consequences of Bayesian rationality and on the other hand strongly emphasizes the limited rationality of actual decision behavior. This seeming discrepancy is also expressed in the collection presented here. The author thinks that a sharp distinction should be made between nor ~ative and descriptive game theory. This position of "methodological dualism" has been expressed in a comment to Aumann's paper "What is game theory trying to accomplish?" (Aumann, 1985, Selten 1985) Normative game theory has the important task to explore the nature and the consequences of idealized full rationality in strategic interaction. This requires a thorough discuss ion of first principles. Empirical arguments are irrelevant here.

Download or read book The Bounds of Reason written by Herbert Gintis and published by Princeton University Press. This book was released on 2014-04-20 with total page 283 pages. Available in PDF, EPUB and Kindle. Book excerpt: Game theory is central to understanding human behavior and relevant to all of the behavioral sciences—from biology and economics, to anthropology and political science. However, as The Bounds of Reason demonstrates, game theory alone cannot fully explain human behavior and should instead complement other key concepts championed by the behavioral disciplines. Herbert Gintis shows that just as game theory without broader social theory is merely technical bravado, so social theory without game theory is a handicapped enterprise. This edition has been thoroughly revised and updated. Reinvigorating game theory, The Bounds of Reason offers innovative thinking for the behavioral sciences.