The thoroughly expanded Second Edition presents a unique, hands-on approach to game theory. While most books on the subject are too abstract or too basic for mathematicians, Game Theory: An Introduction, Second Edition offers a blend of theory and applications, allowing readers to use theory and software to create and analyze real-world decision-making models.
With a rigorous, yet accessible, treatment of mathematics, the book focuses on results that can be used to determine optimal game strategies. Game Theory: An Introduction, Second Edition demonstrates how to use modern software, such as Maple™, Mathematica®, and Gambit, to create, analyze, and implement effective decision-making models. Coverage includes the main aspects of game theory including the fundamentals of two-person zero-sum games, cooperative games, and population games as well as a large number of examples from various fields, such as economics, transportation, warfare, asset distribution, political science, and biology. The Second Edition features:
• A new chapter on extensive games, which greatly expands the implementation of available models
• New sections on correlated equilibria and exact formulas for three-player cooperative games
• Many updated topics including threats in bargaining games and evolutionary stable strategies
• Solutions and methods used to solve all odd-numbered problems
• A companion website containing the related Maple and Mathematica data sets and code
A trusted and proven guide for students of mathematics and economics, Game Theory: An Introduction, Second Edition is also an excellent resource for researchers and practitioners in economics, finance, engineering, operations research, statistics, and computer science.
Recent advances in the field, particularly Parrondo's paradox, have triggered a surge of interest in the statistical and mathematical theory behind gambling. This interest was acknowledge in the motion picture, "21," inspired by the true story of the MIT students who mastered the art of card counting to reap millions from the Vegas casinos. Richard Epstein's classic book on gambling and its mathematical analysis covers the full range of games from penny matching to blackjack, from Tic-Tac-Toe to the stock market (including Edward Thorp's warrant-hedging analysis). He even considers whether statistical inference can shed light on the study of paranormal phenomena. Epstein is witty and insightful, a pleasure to dip into and read and rewarding to study. The book is written at a fairly sophisticated mathematical level; this is not "Gambling for Dummies" or "How To Beat The Odds Without Really Trying." A background in upper-level undergraduate mathematics is helpful for understanding this work.
o Comprehensive and exciting analysis of all major casino games and variants o Covers a wide range of interesting topics not covered in other books on the subject o Depth and breadth of its material is unique compared to other books of this nature
Richard Epstein's website: www.gamblingtheory.net
Understand a game matrix, the prisoners’ dilemma, dominant and mixed strategies, zero-sum games, Pareto efficiency, the Nash equilibrium, and the power of asymmetric information.
Calculate payoffs and outcomes in games involving characters such as Jack and Jill, or Frodo and Gollum. Look at the effects of altruism and hatred on games, and see how games can change over time.
Explore examples looking at gang members, free riders, global governance, a long-term relationship, competing corporations, advertisers and their customers, along with familiar hawk-dove and chicken games.
See game players use every trick in the book to get what they want, with over 50 images to guide through the steps they use to play the game.
“In this fascinating, often surprising book, Alvin Roth guides us through the jungles of modern life, pointing to the many markets that are hidden in plain view all around us.” — Dan Ariely, author of Predictably Irrational and The (Honest) Truth About Dishonesty
Most of the study of economics deals with commodity markets, where the price of a good connects sellers and buyers. But what about other kinds of “goods,” like a spot in the Yale freshman class or a position at Google? If you’ve ever sought a job or hired someone, applied to college or guided your child into a good kindergarten, asked someone out on a date or been asked out, you’ve participated in a kind of market. This is the territory of matching markets, where “sellers” and “buyers” must choose each other, and price isn’t the only factor determining who gets what.
In Who Gets What—and Why, Nobel laureate Alvin E. Roth reveals the matching markets hidden around us and shows us how to recognize a good match and make smarter, more confident decisions.
“Mr. Roth’s work has been to discover the most efficient and equitable methods of matching, and implement them in the world. He writes with verve and style . . . Who Gets What—and Why is a pleasure to read.” — Wall Street Journal
“A book filled with wit, charm, common sense, and uncommon wisdom.” — Paul Milgrom, professor of economics, Stanford University and Stanford Business School
This book represents the earliest clear, detailed, precise exposition of the central ideas and results of game theory and related decision-making models — unencumbered by technical mathematical details. It offers a comprehensive, time-tested conceptual introduction, with a social science orientation, to a complex of ideas related to game theory including decision theory, modern utility theory, the theory of statistical decisions, and the theory of social welfare functions.
The first three chapters provide a general introduction to the theory of games including utility theory. Chapter 4 treats two-person, zero-sum games. Chapters 5 and 6 treat two-person, nonzero-sum games and concepts developed in an attempt to meet some of the deficiencies in the von Neumann-Morgenstern theory. Chapters 7–12 treat n-person games beginning with the von Neumann-Morgenstern theory and reaching into many newer developments. The last two chapters, 13 and 14, discuss individual and group decision making. Eight helpful appendixes present proofs of the famous minimax theorem, several geometric interpretations of two-person zero-sum games, solution procedures, infinite games, sequential compounding of games, and linear programming.
Thought-provoking and clearly expressed, Games and Decisions: Introduction and Critical Survey is designed for the non-mathematician and requires no advanced mathematical training. It will be welcomed by economists concerned with economic theory, political scientists and sociologists dealing with conflict of interest, experimental psychologists studying decision making, management scientists, philosophers, statisticians, and a wide range of other decision-makers. It will likewise be indispensable for students in courses in the mathematical theory of games and linear programming.
In A Cooperative Species, Samuel Bowles and Herbert Gintis--pioneers in the new experimental and evolutionary science of human behavior--show that the central issue is not why selfish people act generously, but instead how genetic and cultural evolution has produced a species in which substantial numbers make sacrifices to uphold ethical norms and to help even total strangers.
The authors describe how, for thousands of generations, cooperation with fellow group members has been essential to survival. Groups that created institutions to protect the civic-minded from exploitation by the selfish flourished and prevailed in conflicts with less cooperative groups. Key to this process was the evolution of social emotions such as shame and guilt, and our capacity to internalize social norms so that acting ethically became a personal goal rather than simply a prudent way to avoid punishment.
Using experimental, archaeological, genetic, and ethnographic data to calibrate models of the coevolution of genes and culture as well as prehistoric warfare and other forms of group competition, A Cooperative Species provides a compelling and novel account of how humans came to be moral and cooperative.
This volume explains ways to create financial tools and how the tools work together to achieve specific goals. Applications are illustrated using real-world examples. It presents three new chapters on financial engineering in topics ranging from commodity markets to financial engineering applications in hedge fund strategies, correlation swaps, structural models of default, capital structure arbitrage, contingent convertibles, and how to incorporate counterparty risk into derivatives pricing. Poised midway between intuition, actual events, and financial mathematics, this book can be used to solve problems in risk management, taxation, regulation, and above all, pricing.
This latest edition of Principles of Financial Engineering is ideal for financial engineers, quantitative analysts in banks and investment houses, and other financial industry professionals. It is also highly recommended to graduate students in financial engineering and financial mathematics programs.* The Second Edition presents 5 new chapters on structured product engineering, credit markets and instruments, and principle protection techniques, among other topics
* Additions, clarifications, and illustrations throughout the volume show these instruments at work instead of explaining how they should act
* The Solutions Manual enhances the text by presenting additional cases and solutions to exercises
"Brilliantly successful."—Bulletin de l'Association des Professeurs de Mathematiques
"The presentation is precise and detailed, the style lucid and almost conversational . . . clearly an outstanding text and work of reference."—Annales
Cartan's Formes Differentielles was first published in France in 1967. It was based on the world-famous teacher's experience at the Faculty of Sciences in Paris, where his reputation as an outstanding exponent of the Bourbaki school of mathematics was first established.
Addressed to second- and third-year students of mathematics, the material skillfully spans the pure and applied branches in the familiar French manner, so that the applied aspects gain in rigor while the pure mathematics loses none of its dignity. This book is equally essential as a course text, as a work of reference, or simply as a brilliant mathematical exercise.
First edition published by Prentice-Hall in 2001- ISBN 0130174467.
The second edition includes new structure emphasizing the distinction between the equilibrium and the arbitrage perspectives on valuation and pricing, as well as a new chapter on asset management for the long term investor.
"This book does admirably what it sets out to do - provide a bridge between MBA-level finance texts and PhD-level texts....
many books claim to require little prior mathematical training, but this one actually does so.
This book may be a good one for Ph.D students outside finance who need some basic training in financial theory or for those looking for a more user-friendly introduction to advanced theory.
The exercises are very good."
--Ian Gow, Student, Graduate School of Business, Stanford UniversityCompletely updated edition of classic textbook that fills a gap between MBA level texts and PHD level textsFocuses on clear explanations of key concepts and requires limited mathematical prerequisitesUpdates includes new structure emphasizing the distinction between the equilibrium and the arbitrage perspectives on valuation and pricing, as well as a new chapter on asset management for the long term investor
Recent advances in the field, particularly Parrondo's paradox, have triggered a surge of interest in the statistical and mathematical theory behind gambling. This interest was acknowledge in the motion picture, "21," inspired by the true story of the MIT students who mastered the art of card counting to reap millions from the Vegas casinos. Richard Epstein's classic book on gambling and its mathematical analysis covers the full range of games from penny matching to blackjack, from Tic-Tac-Toe to the stock market (including Edward Thorp's warrant-hedging analysis). He even considers whether statistical inference can shed light on the study of paranormal phenomena. Epstein is witty and insightful, a pleasure to dip into and read and rewarding to study. The book is written at a fairly sophisticated mathematical level; this is not "Gambling for Dummies" or "How To Beat The Odds Without Really Trying." A background in upper-level undergraduate mathematics is helpful for understanding this work.Comprehensive and exciting analysis of all major casino games and variantsCovers a wide range of interesting topics not covered in other books on the subjectDepth and breadth of its material is unique compared to other books of this nature
Richard Epstein's website: www.gamblingtheory.net
This sixtieth anniversary edition includes not only the original text but also an introduction by Harold Kuhn, an afterword by Ariel Rubinstein, and reviews and articles on the book that appeared at the time of its original publication in the New York Times, tthe American Economic Review, and a variety of other publications. Together, these writings provide readers a matchless opportunity to more fully appreciate a work whose influence will yet resound for generations to come.
In Predictable and Avoidable, Dr Pezzuto offers business school students; academics; and industry experts in the fields of finance, risk management, audit, corporate governance, economics, and regulation, a truly independent and unbiased analysis of the financial crises starting in 2007 and one of the first fully considered expositions of the financial, governance and regulatory reforms needed for the future.
Augmented with personal interviews involving selected global thought leaders and industry experts, the author's narrative focuses on the technical issues that led to the global crisis, but also addresses the human, cultural, and ethical aspects of the events from both sociological and managerial perspectives. The book exposes the root causes and contributes significantly to the debate about the change needed in the banking and finance industries and to supervisory frameworks and regulatory mechanisms.
This analysis enables readers to understand that the crisis we have seen was predictable and should have been avoidable, and that a recurrence can be avoided, if lessons are learned and the right action taken.
Game Theory means rigorous strategic thinking. It is based on the idea that everyone acts competitively and in his own best interest. With the help of mathematical models, it is possible to anticipate the actions of others in nearly all life's enterprises. This book includes down-to-earth examples and solutions, as well as charts and illustrations designed to help teach the concept. In The Complete Idiot's Guide® to Game Theory, Dr. Edward C. Rosenthal makes it easy to understand game theory with insights into:
? The history of the disciple made popular by John Nash, the mathematician dramatized in the film A Beautiful Mind
? The role of social behavior and psychology in this amazing discipline
? How important game theory has become in our society and why
The book is a wide-ranging exploration of standard theories of choice and belief under risk and uncertainty. Ken Binmore discusses the various philosophical attitudes related to the nature of probability and offers resolutions to paradoxes believed to hinder further progress. In arguing that the Bayesian approach to knowledge is inadequate in a large world, Binmore proposes an extension to Bayesian decision theory--allowing the idea of a mixed strategy in game theory to be expanded to a larger set of what Binmore refers to as "muddled" strategies.
Written by one of the world's leading game theorists, Rational Decisions is the touchstone for anyone needing a concise, accessible, and expert view on Bayesian decision making.
In this brilliant and entertaining book, Ignacio Palacios-Huerta illuminates economics through the world's most popular sport. He offers unique and often startling insights into game theory and microeconomics, covering topics such as mixed strategies, discrimination, incentives, and human preferences. He also looks at finance, experimental economics, behavioral economics, and neuroeconomics. Soccer provides rich data sets and environments that shed light on universal economic principles in interesting and useful ways.
Essential reading for students, researchers, and sports enthusiasts, Beautiful Game Theory is the first book to show what soccer can do for economics.
Numerous captivating integer sequences arise along the way, but also many open questions impose themselves. Central among these is the famed Frame-Stewart conjecture. Despite many attempts to decide it and large-scale numerical experiments supporting its truth, it remains unsettled after more than 70 years and thus demonstrates the timeliness of the topic.
Enriched with elaborate illustrations, connections to other puzzles and challenges for the reader in the form of (solved) exercises as well as problems for further exploration, this book is enjoyable reading for students, educators, game enthusiasts and researchers alike.
If playing games is natural for humans, analyzing games is equally natural for mathematicians. Even the simplest of games involves the fundamentals of mathematics, such as figuring out the best move or the odds of a certain chance event. This entertaining and wide-ranging guide demonstrates how simple mathematical analysis can throw unexpected light on games of every type—games of chance, games of skill, games of chance and skill, and automatic games.
Just how random is a card shuffle or a throw of the dice? Is bluffing a valid poker strategy? How can you tell if a puzzle is unsolvable? How large a role does luck play in games like golf and soccer? This book examines each of these issues and many others, along with the general principles behind such classic puzzles as peg solitaire and Rubik's cube. Lucid, instructive, and full of surprises, it will fascinate mathematicians and gamesters alike.
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
The book begins by describing the strategies and their performance in a clear, straightforward style. The presentation is self-contained, nonmathematical, and accessible to readers at all levels of playing skill, from the novice to the blackjack expert. Careful attention is also given to simplified, but still nearly optimal strategies that are easier to use in a casino. Unlike other books in the literature the author then derives each aspect of the strategy mathematically, to justify its claim to optimality. The derivations mostly use algebra and calculus, although some require more advanced analysis detailed in supporting appendices. For easy comprehension, formulae are translated into tables and graphs through extensive computation.
This book will appeal to everyone interested in blackjack: those with mathematical training intrigued by its application to this popular game as well as all players seeking to improve their performance.
N. Richard Werthamer is retired from a successful career as a scientist and executive, most recently as the Executive Officer of the American Physical Society. He graduated summa cum laude from Harvard College before receiving his PhD in Theoretical Physics from the University of California at Berkeley. His original research has been published extensively in the world’s leading journals. In this book, he applies his scientific background to the analysis of blackjack.
This second edition, revised and expanded, is now easier to use than ever. Step into the ring and learn to:
Implement an abbreviated systemthe K-O Rookie that s powerful enough to yield a player advantage and simple enough to be mastered in a few hours.
Advance to a profession-level systemthe K-O Preferred which performs on par with the most sophisticated systems on the market.
Win the cat-and-mouse game between the casinos and the players.
Game theory shows that in order to coordinate its actions, a group of people must form "common knowledge." Each person wants to participate only if others also participate. Members must have knowledge of each other, knowledge of that knowledge, knowledge of the knowledge of that knowledge, and so on. Michael Chwe applies this insight, with striking erudition, to analyze a range of rituals across history and cultures. He shows that public ceremonies are powerful not simply because they transmit meaning from a central source to each audience member but because they let audience members know what other members know. For instance, people watching the Super Bowl know that many others are seeing precisely what they see and that those people know in turn that many others are also watching. This creates common knowledge, and advertisers selling products that depend on consensus are willing to pay large sums to gain access to it. Remarkably, a great variety of rituals and ceremonies, such as formal inaugurations, work in much the same way.
By using a rational-choice argument to explain diverse cultural practices, Chwe argues for a close reciprocal relationship between the perspectives of rationality and culture. He illustrates how game theory can be applied to an unexpectedly broad spectrum of problems, while showing in an admirably clear way what game theory might hold for scholars in the social sciences and humanities who are not yet acquainted with it.
In a new afterword, Chwe delves into new applications of common knowledge, both in the real world and in experiments, and considers how generating common knowledge has become easier in the digital age.
The textbook covers topics such as fair division, graph coloring problems, evasiveness of graph properties, and embedding problems from discrete geometry. The text contains a large number of figures that support the understanding of concepts and proofs. In many cases several alternative proofs for the same result are given, and each chapter ends with a series of exercises. The extensive appendix makes the book completely self-contained.
The textbook is well suited for advanced undergraduate or beginning graduate mathematics students. Previous knowledge in topology or graph theory is helpful but not necessary. The text may be used as a basis for a one- or two-semester course as well as a supplementary text for a topology or combinatorics class.
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This complete summary of the ideas from Steven Levitt and Stephen Dubner's book "Think Like A Freak" states how economic theories can also be applied to problems in society. This is the concept of Freakonomics. Freakonomics basically means thinking for yourself and acknowledging the facts. Learning to ‘think like a freak’ means you can tackle the difficult problems that other people ignore. According to Levitt and Dubner, there are eight steps to ‘thinking like a freak’, such as putting away your moral compass, admitting what you don't know and thinking like a child. By applying these principles to your own thinking, you will be ready to tackle bigger problems strategically.
Added-value of this summary:
• Save time
• Learn how to ‘think like a freak’
• Tackle the really difficult problems
To learn more, read “Think Like A Freak” and follow the eight steps to start solving real problems!
This complete summary of the ideas from John Assaraf and Murray Smith's book "The Answer" solves the question that almost everyone asks at some point in their life: "How can I access the unlimited abundance of the universe and become a “success” – whichever way I personally define that term?". In their book, the authors explain that learning how to focus your thoughts and maximising the power of your mind is essential to building your own business. You can then use that business to achieve your goals. This summary provides the key to changing your life and getting what you want.
Added-value of this summary:
• Save time
• Understand key concepts
• Expand your knowledge
To learn more, read "The Answer" and find out how you can change your life and devote yourself to achieving your goals.