# Game Theory

## Analysis of Conflict

## Roger B. Myerson

# Game Theory

## Analysis of Conflict

## Roger B. Myerson

## About This Book

Eminently suited to classroom use as well as individual study, Roger Myerson's introductory text provides a clear and thorough examination of the models, solution concepts, results, and methodological principles of noncooperative and cooperative game theory. Myerson introduces, clarifies, and synthesizes the extraordinary advances made in the subject over the past fifteen years, presents an overview of decision theory, and comprehensively reviews the development of the fundamental models: games in extensive form and strategic form, and Bayesian games with incomplete information. Game Theory will be useful for students at the graduate level in economics, political science, operations research, and applied mathematics. Everyone who uses game theory in research will find this book essential.

## Information

**1**

## Decision-Theoretic Foundations

**1.1 Game Theory, Rationality, and Intelligence**

*game*refers to any social situation involving two or more individuals. The individuals involved in a game may be called the

*players*. As stated in the definition above, there are two basic assumptions that game theorists generally make about players: they are rational and they are intelligent. Each of these adjectives is used here in a technical sense that requires some explanation.

*rational*if he makes decisions consistently in pursuit of his own objectives. In game theory, building on the fundamental results of decision theory, we assume that each playerâs objective is to maximize the expected value of his own payoff, which is measured in some

*utility*scale. The idea that a rational decision-maker should make decisions that will maximize his expected utility payoff goes back at least to Bernoulli (1738), but the modern justification of this idea is due to von Neumann and Morgenstern (1947). Using remarkably weak assumptions about how a rational decision-maker should behave, they showed that for any rational decision...

## Table of contents

*Game Theory*([edition unavailable]). Harvard University Press. Retrieved from https://www.perlego.com/book/1147792/game-theory-analysis-of-conflict-pdf (Original work published 2013)

*Game Theory*. [Edition unavailable]. Harvard University Press. https://www.perlego.com/book/1147792/game-theory-analysis-of-conflict-pdf.

*Game Theory*. [edition unavailable]. Harvard University Press. Available at: https://www.perlego.com/book/1147792/game-theory-analysis-of-conflict-pdf (Accessed: 14 October 2022).

*Game Theory*. [edition unavailable]. Harvard University Press, 2013. Web. 14 Oct. 2022.