The concepts of game theory (rationality etc) now pervade much of social science, so that Professor Zagare's exposition of game theory and its applications (intended to “convert the unconverted and initiate the uninitiated”) is very welcome. He provides methods for analysing the structure of the game; considers zero and nonzero-sum games and the fundamental ‘minimax theorem’; and investigates games with more than two players, including the possibility of coalitions between players. Diverse examples give the reader an idea of how the theory can be applied to a wide range of situations.
The theoretical edifice of n-person games, where n ≥ 3, will be the final division of game theory examined in this essay. Games of this category are both quantitatively and qualitatively different from two-person games. As soon as a third player is added to a game, the possibility of a coalition ...