Economics and the Theory of Games

Fernando Vega-Redondo''s self-contained account of the main contributions of modern game theory and its applications to economics starts with a detailed description of how to model strategic situations. The discussion proceeds by studying basic solution concepts and their main refinements; games played under incomplete information; and repeated games. For each of these theoretical developments the text includes a companion set of applications that cover the most representative instances of game-theoretic analysis in economics (e.g. oligopolistic competition public goods coordination failures bargaining insurance markets implementation theory signaling and auctions).