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E book game theory an introduction

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A PR INCETON UNI V ER SIT Y PR ESS E-BOOK Game heory An Introduction S T GAME THEORY GAME THEORY AN INTRODUCTION Steven Tadelis PRINCETON UNIVERSITY PRESS Princeton and Oxford Copyright © 2013 by Princeton University Press Published by Princeton University Press, 41 William Street, Princeton, New Jersey 08540 In the United Kingdom: Princeton University Press, 6 Oxford Street, Woodstock, Oxfordshire OX20 1TW press.princeton.edu All Rights Reserved Library of Congress Cataloging-in-Publication Data Tadelis, Steve. Game theory : an introduction / Steven Tadelis. p. cm. Includes bibliographical references and index. ISBN 978-0-691-12908-2 (hbk. : alk. paper) 1. Game theory. I. Title. HB144.T33 2013 519.3—dc23 2012025166 British Library Cataloging-in-Publication Data is available This book has been composed in Times Roman and Myriad using ZzTEX by Princeton Editorial Associates Inc., Scottsdale, Arizona Printed on acid-free paper. Printed in the United States of America 10 9 8 7 6 5 4 3 2 1 Contents Preface PART I xi Rational Decision Making Chapter 1 The Single-Person Decision Problem 1.1 1.2 1.3 1.4 Actions, Outcomes, and Preferences 1.1.1 Preference Relations 1.1.2 Payoff Functions The Rational Choice Paradigm Summary Exercises Chapter 2 Introducing Uncertainty and Time 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 Risk, Nature, and Random Outcomes 2.1.1 Finite Outcomes and Simple Lotteries 2.1.2 Simple versus Compound Lotteries ...
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