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Game Theory: Interactive Strategies in Economics and Management, by Aviad Heifetz
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Game theory is concerned with strategic interaction among several decision-makers. In such strategic encounters, all players are aware of the fact that their actions affect the other players. Game theory analyzes how these strategic, interactive considerations may affect the players' decisions and influence the final outcome. This textbook focuses on applications of complete-information games in economics and management, as well as in other fields such as political science, law and biology. It guides students through the fundamentals of game theory by letting examples lead the way to the concepts needed to solve them. It provides opportunities for self-study and self-testing through an extensive pedagogical apparatus of examples, questions and answers. The book also includes more advanced material suitable as a basis for seminar papers or elective topics, including rationalizability, stability of equilibria (with discrete-time dynamics), games and evolution, equilibrium selection and global games.
- Sales Rank: #2224879 in Books
- Brand: Brand: Cambridge University Press
- Published on: 2012-07-09
- Original language: English
- Number of items: 1
- Dimensions: 9.69" h x .83" w x 7.44" l, 2.15 pounds
- Binding: Paperback
- 460 pages
- Used Book in Good Condition
Review
Advance praise: "This book fills a long-standing need for a first-rate textbook for an undergraduate course in game theory. It strikes an almost ideal balance between accessibility and rigor with a series of well-chosen examples to light the way. The standard examples (Cournot, Bertrand, location choice) are here along with a host of less common ones (currency speculation, the Six Day War, the Cuban Missile Crisis). Anyone teaching an undergraduate game theory course should consider adopting Heifetz's book as a text." Bart Lipman, Boston University
"Game Theory: Interactive Strategies in Economics and Management is an introduction to game theory written by Aviad Heifetz, a leading scholar of the foundations of game theory. The book uses well chosen and up-to-date examples, ranging from conflict in the Middle East to the Internet, to introduce the key ideas from game theory in an elementary but rigorous way. As well as covering classical material, the book reaches topics at the frontiers of the subject; I particularly enjoyed the material on strategic uncertainty, global games and difficulties of backwards induction. I would recommend the use of this book as a text for introducing students to game theory and giving a conceptually broad but non-technical introduction to game theory and its applications across the social sciences." Stephen E. Morris, Princeton University
"This is an outstanding introductory book for individuals who want to acquire basic understanding of current non-cooperative game theory. In addition to the standard material, the discussion includes more advanced topics, e.g., rationalizability, learning dynamics and evolution; observations from behavioral game theory and experiments; and excellent examples from business and economics. Without excessive mathematics and symbolism, the book can be taught to individuals capable of rigorous analytical thinking, for example interested undergraduates and MBAs." Ehud Kalai, James J. O'Connor Professor of Decision and Game Sciences, Northwestern University
About the Author
Aviad Heifetz is Professor of Economics at the Open University of Israel, where he served as chair of the Economics and Management Department from 2006 to 2009. He was previously Visiting Professor of Managerial Economics at the Kellogg School of Management, Northwestern University (2009-2011).
Most helpful customer reviews
1 of 1 people found the following review helpful.
The examples can get a bit wordy but still a good resource
By Z. Freeman
This is a fairly straightforward textbook. The reading is not overly captivating but it's also not dry to the point of making it difficult to learn from. Some of the examples do get a bit wordy, but it seems like the author just really wants to make sure the reader is following along step-by-step. In my opinion it's better for a textbook to over-explain than under-explain.
New concepts are bolded when first introduced and though some mathematical concepts are required before even making your way into this book, the author tries to spell things out enough to let the reader in on the concept without talking over their head. Some of the examples are easier to follow than others but there are plenty of strategy tables and graphs and other images to help make any of the more complicated points easier to grasp. The index is fairly complete and makes finding specific concepts easy.
0 of 0 people found the following review helpful.
Well written but basically a textbook
By Hal Jordan
Game theory is a hot field. I think it's fair to say that most of what used to be called microeconomics is now game theory. The term has become familiar enough that at least some average readers may well be interested in this book, although most will probably find the price to be very high for a paperback book. Perhaps some business people may also be looking for an introduction to game theory (they will be less likely to be put off by the price!).
In any event, I think that most average readers and business people will find the book too technical for their tastes. Although clearly written as an introduction, the book quickly begins to make fairly heavy use of notation that will likely weed out all but the most dedicated readers. A better introduction for the average reader is the old Dixit and Nalebuff book Thinking Strategically: The Competitive Edge in Business, Politics, and Everyday Life or, possibly, their updated version The Art of Strategy: A Game Theorist's Guide to Success in Business and Life, although I haven't read it and the reviews appear mixed.
I assume that the main audience for this book is undergraduate students who will have it assigned in an introductory course on game theory. I'm just not familiar enough with textbooks for that course to judge how well this one stacks up. I would hazard a guess that this book might prove a useful supplement to (or, perhaps, an alternative to) another text for students who have the money to buy a second text.
0 of 0 people found the following review helpful.
Covers a lot, academic
By M. Hyman
It is a bit hard to review this book, in that I haven't read enough other books about the topic to compare widely. Having said that, this book covers a lot of important topics for game theory: Nash Equilibriums, Strong and Weak strategies, cooperation models, coordinated issues, and more. As such, you'll get an overview of a lot of key topics. The book uses a mix of pseudo-real examples. This is important, because for me, at least, operating without examples that at least feel real world makes a book such as this much harder to comprehend. Having said that, i would have preferred a few more realistic examples interspersed, since sometimes one of the hard parts is turning theory into reality.
The book is filled with math -- not super scary stuff, ut plenty of it, so if you are like me and have been away from student life for a long time it can be a bit daunting. I would also have liked some sample code interspersed, since sometimes it is a lot easier to understand the issues when broken out in pseudocode.
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