Game Theory and Economic Modelling (Clarendon Lectures in Economics) [Paperback]

David M. Kreps (Author)

Book Description

ISBN-10: 0198283814 | ISBN-13: 978-0198283812 | Publication Date: December 6, 1990

This book examines why game theory has become such a popular tool of analysis. It investigates the deficiencies in this methodology and goes on to consider whether its popularity will fade or remain an important tool for economists. The book provides the reader with some basic concepts from noncooperative theory, and then goes on to explore the strengths, weaknesses, and future of the theory as a tool of economic modelling and analysis. All those interested in the applications of game theory to economics, from undergraduates to academics will find this study of particular value.

Editorial Reviews

Review

`fascinating little book' Jean Tirole, Journal of Economic Literature

`a book I could not put down ... the exposition is remarkably clear' Journal of Economic Perspectives

`Will rapidly be established as a basic reference for students and their teachers ... even the less mathematically inclined economists will find much to gain from the application of new game theory techniques in economics.' Scottish Journal of Political Economy

'It is partly a measure of how much macroeconomics has ceased to be a separate subject from microeconomics that workers in my field will now find so much to interest them in this book. It is more a measure of how engaging this book is.' Thomas J. Sargent, University of Chicago, Journal of Political Economy

'The writing is in a very personalised style. Though the book is putatively for the novice, or less formally trained reader, the presentation and the level of the debate does make certain demands. It nevertheless is frontline stuff.' Economics Times, April 1992

'I view Krep's discussions in the book as both interesting and helpful in describing certain key weaknesses of standard game theory.' Ronald Heiner, George Mason University, Constitutional Political Economy, Vol. 3, No. 1, 1992

'Kreps has written a book that makes a sincere attempt to demystify game theory for the uninitiated and set the stage for a serious appraisal of the scope and limitations of game theory ... it does manage to convey a flavour of the excitement that comes from grappling with strategic behaviour, and hopefully should convince the reader with an open mind that game theoretic questions and applications are abstractions of relevant economic issues.' Anindya Sen, Economic and Political Weekly, Vol XXVII No 14 April 4, 1992

About the Author

David M. Kreps is at Stanford University.

Product Details

• Paperback: 208 pages
• Publisher: Oxford University Press, USA (December 6, 1990)
• Language: English
• ISBN-10: 0198283814
• ISBN-13: 978-0198283812
• Product Dimensions: 8.4 x 5.4 x 0.7 inches
• Shipping Weight: 9.9 ounces (View shipping rates and policies)
• Average Customer Review: 4.5 out of 5 stars  See all reviews (4 customer reviews)
• Amazon Best Sellers Rank: #463,467 in Books (See Top 100 in Books)

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Customer Reviews

Most Helpful Customer Reviews

33 of 34 people found the following review helpful:

5.0 out of 5 stars A lecture, not a book, January 15, 2001

By A Customer

This review is from: Game Theory and Economic Modelling (Clarendon Lectures in Economics) (Paperback)

This is an offhand lecture by a professional in the field. It's not a textbook or a monograph - it is a side look at the state of the field. The author explains why game theory was useful in explaining various phenomena, but at the same time gives us hints for why it failed to explain others. You will learn that the abundancy of equilibria and structure in repeated games will enable you to prove almost anything, which is the weakness rather than a strength of this tool. Kreps defines the limits of the field and tells the reader what is yet to be done in game theory - and why.

A good read after a theoretical textbook. It allows you to stop, turn around and ask yourself a few fundamental questions.

9 of 9 people found the following review helpful:

5.0 out of 5 stars A Very Nice Introduction to the Topic, March 3, 2006

By 

Mr. S. Ghosh (Bangalore, India) - See all my reviews
(REAL NAME)   

This review is from: Game Theory and Economic Modelling (Clarendon Lectures in Economics) (Paperback)

I picked up this book a couple of weeks back in order to broaden my knowledge of Game Theory in the field of economic modeling. Since I was looking for an introduction with brief explanations of topics, a few pointers etc.; I would say, I was very pleased with the content matter as well as with the manner of presentation.

What it is NOT: As have been mentioned by a few reviewers, this work is NOT a detailed text-book in Game Theory, or its varied applications, or Macroeconomic and Microeconomic Modeling. If you're looking for any or all of these, kindly refer to other works.

What it is: Instead, it's a very nice introduction into the world of "non-cooperative game theoretic economic modeling" especially in the context of bargaining between employers and workers, optimizing production function(s) for monopolistic firms, detecting incredible and credible threats etc. The introductions to Normal and Strategic forms of non-cooperative games theoretic representations, the "Folk Theorem", "von Stackelberg" type repetitive games etc are very nicely exemplified.

Kindly bear in mind: As the author mentions at the very beginning, it is not a text book. Anyone starting out on a journey of Game Theory in Macro-economic and Micro-economic modeling would do well, if he/she would read this work and then move on to a more comprehensive text-book. Since this work is not voluminous in size and very easily piled up (both to the author's credit), it's a very nice introduction to the subject.

4th March, 2006

Subhasish Ghosh
St. Cross College, University of Oxford

5 of 5 people found the following review helpful:

5.0 out of 5 stars Good Background, February 22, 2006

By 

Michael Thomas "mthomas1776" (Logan, UT) - See all my reviews
(REAL NAME)   

Amazon Verified Purchase

This review is from: Game Theory and Economic Modelling (Clarendon Lectures in Economics) (Paperback)

The intro suggests that this book is for a casual reader who is looking to understand Game Theory. I agree. I read this book along with the text by the same author and am very pleased that I did. I can understand his textbook much easier after reading the book. I feel like the book is a very interesting read, which never gets too technical. He indicates several points where a textbook would be better, that in this format he is just looking to give an overview. Regardless, I have found that studying game theory is much better having read this book. The topic can be a little overwhelming at first, but with Kreps, it comes out fine in the end.