Strategy and Game Theory, Practice Exercises with Answers, Second Edition

Deskripsi

This textbook presents worked-out exercises on Game Theory, with detailed step-by-step explanations, which both undergraduate and master’s students can use to further understand equilibrium behavior in strategic settings. While most textbooks on Game Theory focus on theoretical results, see, for instance, Tirole (1991), Gibbons (1992) and Osborne (2004), they offer few practice exercises. Our goal is, hence, to complement the theoretical tools in current textbooks by providing practice exercises in which students can learn to systematically apply theoretical solution concepts to different fields of Economics and Business, such as industrial economics, public policy, and regulation. The textbook provides many exercises with detailed verbal explanations (153 exercises in total), which cover the topics required by Game Theory courses at the undergraduate level, and by most courses at the master’s level. Importantly, our textbook emphasizes the economic intuition behind the main results and avoids unnecessary notation when possible, and thus is useful as a reference book regardless of the Game Theory textbook adopted by each instructor. Importantly, these points differentiate our presentation from that found in solutions manuals. Unlike these manuals, which can be rarely read in isolation, our textbook allows students to essentially read each exercise without difficulties, thanks to the detailed explanations, figures, and intuitions. Furthermore, for presentation purposes, each chapter ranks exercises according to their difficulty (with a letter A to C next to the exercise number), allowing students to first set their foundations using easy exercises (type-A), and then move on to harder applications (type-B and C exercises).