Game theory, particularly the use of repeated games, N-person games, and incomplete information games have been popular research techniques in political science, sociology, and management but difficult for new social researchers to use until now. Aimed at making these topics accessible to all social scientists, Game Theory Topics shows how game theory can be productively applied to problems in the social sciences. Using a common social science game to illustrate game theory concepts, the authors introduce readers to games of incomplete information; how to build uncertainty into game theoretic models; the concept of Bayesian Nash equilibrium; and the role of repetition in game theory, including how game theoretic models can easily accommodate many players. Throughout the book, the authors use applications to social science problems to illustrate the points being developed in each chapter.
Imperfect and Incomplete Information
Imperfect and Incomplete Information[Page 7]
Two young men sit across from each other in separate stolen automobiles. They have agreed to settle their difference with a nocturnal “Chickie Run.” The two young men are to race their respective cars toward a cliff. The first to jump out wins the ignominious title of “chickie.” ...