A comprehensive introduction to game theory, beginning with its historical evolution from early concepts to the foundational work of John von Neumann and Oscar Morgenstern, and significantly, John F. Nash's contributions that revolutionized the field. It differentiates between cooperative and noncooperative games, explaining static and dynamic interactions with both complete and incomplete information. Key solution concepts are explored, including Nash equilibrium, its refinements like subgame perfect Nash equilibrium, and sequential equilibrium, alongside correlated equilibrium and evolutionary stable strategies. The text also addresses implementation theory, detailing how mechanisms can be designed to achieve social choice rules, and discusses coalitional games with transferable utility, introducing concepts such as the core and Shapley value. Finally, it covers cooperative bargaining problems and matching markets, examining various axioms and solutions for fair divisions.
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