Game Theory for Applied Economists [Paperback]

Robert Gibbons (Author)

Book Description

ISBN-10: 0691003955 | ISBN-13: 978-0691003955 | Publication Date: July 13, 1992

This book introduces one of the most powerful tools of modern economics to a wide audience: those who will later construct or consume game-theoretic models. Robert Gibbons addresses scholars in applied fields within economics who want a serious and thorough discussion of game theory but who may have found other works overly abstract. Gibbons emphasizes the economic applications of the theory at least as much as the pure theory itself; formal arguments about abstract games play a minor role. The applications illustrate the process of model building--of translating an informal description of a multi-person decision situation into a formal game-theoretic problem to be analyzed. Also, the variety of applications shows that similar issues arise in different areas of economics, and that the same game-theoretic tools can be applied in each setting. In order to emphasize the broad potential scope of the theory, conventional applications from industrial organization have been largely replaced by applications from labor, macro, and other applied fields in economics. The book covers four classes of games, and four corresponding notions of equilibrium: static games of complete information and Nash equilibrium, dynamic games of complete information and subgame-perfect Nash equilibrium, static games of incomplete information and Bayesian Nash equilibrium, and dynamic games of incomplete information and perfect Bayesian equilibrium.

Editorial Reviews

Review

Lucid and detailed introduction to game theory in an explicitly economic context. -- Cooperative Economic News Service

Product Details

• Paperback: 288 pages
• Publisher: Princeton University Press (July 13, 1992)
• Language: English
• ISBN-10: 0691003955
• ISBN-13: 978-0691003955
• Product Dimensions: 9.5 x 6.2 x 0.7 inches
• Shipping Weight: 4.8 ounces (View shipping rates and policies)
• Average Customer Review: 4.2 out of 5 stars  See all reviews (28 customer reviews)
• Amazon Best Sellers Rank: #15,621 in Books (See Top 100 in Books)

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Customer Reviews

Most Helpful Customer Reviews

16 of 17 people found the following review helpful:

5.0 out of 5 stars An excellent short text, December 13, 2001

By 

Pranab Majumder (Chapel Hill, NC United States) - See all my reviews
(REAL NAME)   

This review is from: Game Theory for Applied Economists (Paperback)

This is an excellent quick guide to the essentials fo Game theory for graduate level students. While is has slightly less detail than Tirole and Fudenberg's Game Theory, and fewer stories and context than Binmore's "Fun and Games" (an undergraduate level text), this book is very important in presenting the structure of non-cooperative game theory in a lean manner. It is also very good as a reference text.

19 of 22 people found the following review helpful:

4.0 out of 5 stars Great Little Book- for Economists, March 6, 2003

By 

D. W. MacKenzie (New London CT) - See all my reviews
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This review is from: Game Theory for Applied Economists (Paperback)

Gibbons makes learning game theory easy. Game Theory for Applied Economists explains both how to solve and the ideas behind game theoretic models carefully. This enables students to better see how the math applies to how people vie in markets. It also makes it accessable to students who do not already know a great deal of math. Game Theory for Applied Economists could be used as an undergraduate text, as well as a supplemetal text in graduate school. Some of the other reviewers find this book difficult, but it is easy compared to most math-econ texts.

There is alot more to game theory that what you see in this book, but this book teaches enough game theory for a good general understanding of this subject. This book covers the concepts all should start with, no matter where you end up heading with game theory. Everyone planning to attend graduate school for economics should read this book.

11 of 12 people found the following review helpful:

4.0 out of 5 stars Useful, informative, June 4, 2005

By 

SamBK (United States) - See all my reviews

This review is from: Game Theory for Applied Economists (Paperback)

This is the book I learned game theory from. I think the book covers a good deal of game theory with enough details and coverage. The best thing about the book is that the discussions are simple and clear which makes learning game theory easy and quick. The book is not very technical, but goes through examples (both simple and little more complicated) to clarify different games. At the end of chapters there are exercises too, and they are helpful.

I recommend this book as your first book in game theory. If you want to do some serious work with game theory, you may want to check more technical and more advanced books in the field.