GAME THEORY: A VERY BRIEF AND NON-TECHNICAL INTRODUCTION

In this introductory text, we explain the key concepts and strategies of game theory, alongside the well-known 'games' in which these principles are put to the test. Instead of overwhelming the reader with complex equations and jargon, we unravel the fascinating world of game theory through engaging and entertaining narratives, presenting the fundamentals of the field in an accessible style. Perfect for students beginning their journeys in economic theory and general readers alike, this book will foster an understanding of the hidden strategies at play in all kinds of human interaction.

Game theory, which can also be referred to as the science of strategy, is the study of how agents – individuals, firms, institutions and governments – make a decision when the outcome of their moves depends on the decisions of others. In these situations, the agents sometimes cooperate, sometimes clash, sometimes do both and sometimes act randomly. From low-stakes, everyday decisions to pivotal negotiations between international governments, game theory is applicable to all aspects of our lives as social beings.

Among other applications of game theory, the book proposes a referee assignment system for football competitions like the English Premier League, incorporating team preferences for greater fairness. It also proposes an AI-based method to reduce chess draws, where moves are scored based on their proximity to optimal play, and the player with the highest score wins in the event of a draw.

Contents:

• Foreword
• Preface
• About the Authors
• Introduction
• Referee Appointments in Fantasia: An Algorithm Based on Fair Play and Harmony
• The Grand Chess Saga of Fantasia: The Rise of the Wise Machine
• The Most Iconic Game of All: The Prisoner's Dilemma
• Not the First But the Second Price: Auctions
• A Guessing Game: Who Will Win the Beauty Contest?
• Nash Equilibrium: Where Will the Lovers Meet?
• Fight to the End: From Bertrand Equilibrium to War of Attrition
• The Power of Unpredictability: Matching Pennies and Tax Evasion
• The Ultimatum Game: Mr. Charles' Will
• Room for Negotiation: Credible Threats and Backward Induction
• The Self-Defence of Monopoly: Entry Deterrence and Commitment Strategies
• Repeated Games: Can OPEC Countries Adhere to Their Quotas in the Long Run?
• Patronage Cycles: Political Culture as a Subgame Perfect Equilibrium
• Signalling Games: Can Edward Smythe Avoid Mad Jack in Disguise?
• Screening Games: Revealing Demand Through Different Price Offers Over Time
• Summary and Conclusion
• A Letter from Nash
• Index

Readership: This book is targeted towards early-stage undergraduate students in economics, as well as general readers interested in economics. The book may also appeal to industry practitioners involved in decision-making in general business and governance contexts.