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Readings in Games and Information


This essential collection brings together influential classic and contemporary articles from a variety of sources to present the key topics in game theory. Rather than an exhaustive volume, this superb resource offers students and researchers an accessible treatment of game theory essentials. The text is interspersed with editorial commentary, newspaper articles and cartoons, recommendations for further reading, and a substantial amount of material on how to conduct research in this area.

Readings in Games and Information is an exceptional course companion, used alone or as a supplement to Rasmusen's Games and Information (third edition, Blackwell, 2001).

Eric Rasmusen is Professor of Business Economics and Public Policy and Sanjay Subhedar Faculty Fellow at Indiana University, and has also held positions at UCLA, the University of Chicago, Harvard, and Yale. He has published in the areas of anti-trust, industrial organization, political economy, law and economics, and game theory.



Part One: The Rules of the Game.


1. The Prisoner's Dilemma (Philip D. Straffin, Jr.).

2. A two-Person Dilemma (Albert Tucker).

3. Equilibrium Points in N-Person Games (John F. Nash Jr.).

4. Non-Cooperative Games (John F. Nash, Jr.).

5. To Ensure High Prices, Some Haulers Have Been Known to Break the Rules (Jeff Bailey).

6. Cash Flow: 'Pay to Play' is Banned, But Muni-Bond Firms Keep the game Going (Charles Gasparino and Josh P. Hamilton).

7. School of Genius (Sylvia Nasar).

8. Cartoon: Ratbert the Consultant (Scott Adams).

Part Two: Information.

9. The Donation Booth (Ian Ayres and Jeremy Bulow).

10. The Horatii and the Curiatii (Livy).

11. TREES - A Decision-Maker's Lament (Michael H. Rothkopf).

12. Knowing and Sowing Economic s and Law (Judith Lachman).

13. Cartoon: "All Those in Favor, Say 'Aye'" (Henry Martin).

Part Three: Mixed and Continuous Strategies.


14. Colonel Blotto: A Problem of Military Strategy (John McDonald and John W. Tukey).

15. Dutch Accountants Take on a Formidable Task: Ferreting Our "Cheaters" in the Ranks of OPEC (Paul Hemp).

16. Shipping Price-Fixing Pacts Hurt Consumers, Critics Say (Anna Wilde Mathews).

17. The Conference Handbook (George Stigler).

18. Cartoon:" Very Guilty" (Jim Unger).

Part Four: Dynamic Games with Symmetric Information.


19. On An Application of Set Theory to the Theory of the Game of Chess (Ernst Zermelo).

20. The Strategy of Conflict (Thomas C. Schelling).

21. Does the Fittest Necessarily Survive (Martin Shubik).

22. Shooting the Bird's Eye (Elizabeth Seeger).

23. Cartoon: "That's It? That's Peer Review (Sidney Harris).

Part Five: Reputat8iona and Repeated Games with Symmetric Information.


24. The Evolution of Cooperation (Robert Axelrod and William D. Hamilton).

25. This Tax Amnesty Will Work Only Once (Robert J. Barro and Alan Stockman).

26. Fare Warning: How Airlines Trade Price Plans (Asra Q. Nomani).

27. Starting Research Early (Harry V. Roberts and Roman L. Weil).

28. Cartoon: Einstein Discovers that Time is Actually Money (Gary Larson).

Part Six: Dynamic Games with Incomplete Information.


29. Rational Cooperation in the Finitely Repeated Prisoners' Dilemma (David M. Kreps, Paul Milgrom, John Roberts, and Robert Wilson)d.

30. Cheap Talk, Coordinating, and Entry (Joseph Farrell).

31. Wise Guy: Life in a Mafia Family (Nicholas Pileggi).

32. Cartoon: "Say, I Think I See Where We Went Off..." (Ed Fisher).

Part Seven: Moral Hazard: Hidden Actions.


33. Monopoly Slack and Competitive Rigor: A Simple Model (Joseph Farrell).

34. An Optimal Conviction Policy for Offenses that May Have Been Committed by Accident (Ariel Rubinstein).

35. Bonded Worker is No Guarantee of a Perfect Job (Teri Agins).

36. Cartoon: "Look, Ted! We Get Paid the Same as You but All We're Doing is Standing Around and Flicking our Fingers" (Scott Adams).

Part Eight: Further Topics in Moral Hazard.


37. Wealth of Nations (Adam Smith).

38. Examples of Plea Bargains (Eric Rasmusen).

39. Unions Say Auto Firms Us Interplant Rivalry to Raise Work Quotas (Dael D. Buss).

40. Cartoon: "Dilbert, I Want You to Manage Wally's Project While He's on Vacation in Aruba" (Scott Adams).

Part Nine: Adverse Selection.


41. The Market for "Lemons": Quality Uncertainty and the Market Mechanism (George A. Akerlof).

42. The Only Game in Town (Walter Begehot (Pseudonym for Jack Treynor).

43. Are Advertisers Ready to Pay Their Viewers (Bart Ziegler).

44. The Creation of New Mathematics: An Application of the Lakatos Heuristic (Philip J. David, Reuben Hersh, and Elena Marchisotto).

45. Cartoon: Frank's Neurosurgery (Gary Larson).

Part Ten: Mechanism Design in Adverse Selection and in Moral Hazard with Hidden Information.


46. Tie Salesmen's Bonuses to Their Forecasts (Jacob Gonik).

47. Car-Buying Services Can Save Money, Especially for Those who Hate Haggling (Melinda Grenier Gules).

48. How to Build an Economic Model in Your Spare Time (Hal R. Varian).

49. Cartoon: "Of Course That's Only an Estimate..." (Sidney Hoff).

Part Eleven: Signaling.


50. High and Declining Prices Signal Product Quality (Kyle Bagwell and Michael H. Riordan).

51. The Argument of an Appeal (John W. Davis).

52. Cartoon: "Yes, but the Trouble is he Always Wears that Mysterious Smile" (Sidney Hoff).

Part Twelve: Bargaining.


53. The Bargaining Problem.

54. Perfect Equilibrium in a Bargaining Model (Ariel Rubinstein).

55. UPS Faces More Than $1 Billion a Year in New Labor Expenses: Pact Calls for Substantial Pay Increases, Full-Time Jobs and a Union Pension Plan (Douglas A. Blackmon, Martha Brannigan, Glenn Burkins, and Laura Jereski).

56. Cartoon: "Whatever Happened to Elegant Solutions?" (Sidnye Harris).

Part Thirteen: Auctions.


57. The Dollar Auction Game: A Paradox in Noncooperative Behavior and Escalation (Martin Shubik).

58. Analyzing the Airwaves Auction (R. Preston McAfee and John McMillan).

59. At Many Auctions, Illegal Bidding Thrives as a Longtime Practice Among Dealers (Meg Cox).

60. Cartoon: "The Next Item up for Bid is the Presidency of the United States..." (Rob Rogers).

Part Fourteen : Pricing.


61. Stability in Competition (Harold Hotelling).

62. The Mathematical Economic of Professor Amoroso (Francis Edgeworth).

63. Existence and Computation of Mixed Strategy Nash Equilibrium for 3-Firms Location Problem (Avner Shaked).

64. Busting a Trust: Electrical Contractors Reel Under Charges That They Rigged Bids (Andy Pasztor).

65. Cartoon: "Isn't it Great that We Don't Get Any More Pesky Calls during Dinner Asking us to Switch Long-Distance Companies (Rob Rogers).

Part Fifteen: Entry.


66. The Fat-Cat Effect, the Puppy-Dog Ploy, and the Lean and Hungry Look (Drew Fudenberg and Jean Tirole).

67. Drugs: Novel Heart-Drug Deal Protects Sales, Spurs Suit (Ralph T. King, JR.).

68. Aphorisms on Writing, Speaking, and Listening (Ric Rasmusen).

69. Cartoon: Henry and the Candy Shop (Carl Anderson).