Strategy and Game Theory Practice Exercises with Answers

This textbook presents worked-out exercises on game theory with detailed step-by-step explanations. While most textbooks on game theory focus on theoretical results, this book focuses on providing practical examples in which students can learn to systemat

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Felix Munoz-Garcia Daniel Toro-Gonzalez

Strategy and Game Theory Practice Exercises with Answers

Springer Texts in Business and Economics

More information about this series at http://www.springer.com/series/10099

Felix Munoz-Garcia Daniel Toro-Gonzalez •

Strategy and Game Theory Practice Exercises with Answers

123

Felix Munoz-Garcia School of Economic Sciences Washington State University Pullman, WA USA

Daniel Toro-Gonzalez School of Economics and Business Universidad Tecnológica de Bolívar Cartagena, Bolivar Colombia

ISSN 2192-4333 ISSN 2192-4341 (electronic) Springer Texts in Business and Economics ISBN 978-3-319-32962-8 ISBN 978-3-319-32963-5 (eBook) DOI 10.1007/978-3-319-32963-5 Library of Congress Control Number: 2016940796 © Springer International Publishing Switzerland 2016 This work is subject to copyright. All rights are reserved by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained herein or for any errors or omissions that may have been made. Printed on acid-free paper This Springer imprint is published by Springer Nature The registered company is Springer International Publishing AG Switzerland

Preface

This textbook presents worked-out exercises on Game Theory, with detailed step-by-step explanations, which both undergraduate and master’s students can use to further understand equilibrium behavior in strategic settings. While most textbooks on Game Theory focus on theoretical results; see, for instance, Tirole (1991), Gibbons (1992) and Osborne (2004), they offer few practice exercises. Our goal is, hence, to complement the theoretical tools in current textbooks by providing practice exercises in which students can learn to systematically apply theoretical solution concepts to different fields of Economics and Business, such as industrial economics, public policy and regulation. The textbook provides many exercises with detailed verbal explanations (97 exercises in total), which cover the topics required by Game Theory courses at the undergraduate level, and by most courses at the Masters level. Importantly, our textbook emphasizes the economic intuition behind the main result