Game theory has broad applications in applied mathematics,
statistics and economics as well as operations management. It relies
heavily on mathematical modeling. This text uses the principles of
game theory to investigate problem solutions in economics and
management science. The book is designed for graduate students and
advanced undergraduates as well as practitioners of game theory in
their respective industries. While the authors assume no prior
knowledge of game theory to benefit from the book, a background in
mathematics is probably essential for optimum benefit.
The text is divided into a theoretical section and a section on
practical applications. After an introduction presenting an overview
of the text, chapter 2 describes the basic concepts of game theory.
The treatment is classical.
Chapter 3 discusses control theoretic methods and chapter 4
explains Markovian equilibria with simultaneous play. Chapter 5
continues with the theory of games by discussing differential games
with hierarchical play. There is a chapter each on trigger strategy
equilibria, differential games with special structures, and stochastic
Part 2 is the application section, using the theory developed in
Part 1 in a practical setting. Chapter 9 contains applications on
capital accumulation games. Chapter 10 explores industrial
organization and oligopoly games.
The last two chapters, 11 and 12, treat differential games in
marketing and differential games in resources and environmental
economics. Of special interest to the reader is the further reading
section found at the end of each chapter. This is well done and quite
professional. There is also a series of exercises at the end of each
chapter making the text appropriate for classroom use.