An Introduction to Game Theory
 with Economic Applications


Andrew J. Buck


1. A First Look

            A First Homework
           Cigarette Advertising

2. Strategic Form Games

3. Dominance Solvability
                Bertrand Duopoly

4. Nash Equilibrium
       Multiple Equilibria by Roger McCain
                Felix and Oscar: An Example of a Player's Best Response
                The Pizza Wars: An Example
                The Cola Wars: An example of a coordination problem

        Homework: IEDS - Nash - - Oil Wells

5. Tragedy of the Commons

6. Mixed Strategies
                Reason 1
                Reason 2
                Reason 3
                Solving Mixed Strategy Games
                Rock - Paper-Scissors
                Len Guienie and Al Dente go after the spaghetti market
                Frank and Kathy Lee go out

7. Mixed Strategy Applications

        Mixed Strategy Homework: A Day at the Beach
                                                Publishing: Lex E. Kahn v. Thea Soraus
                                                Market Niches 

        Classic Strategic Form Games

8. Extensive Form Games
                Information and Extensive Form Games
                Backward Induction
                        The Proposal
                        Netsoft versus Macroscape
                Kuhn's Theorem on Solvability
                Iterative Elimination and Backward Induction
                Poison Pills
                An Application: R&D

           Extensive Form Game Homework: Bush versus Gore
                                                          The Duel: Hamilton versus Burr
                                                          Career Decisions
                                                          Normal Form and Extensive Form
                                                          Credibility and Subgames

9. Sub-game Perfect Equilibrium
                Buck's Bolts: An Example
                George and Gina: An Example
                Treasury Bill Auctions: A Dynamic Game with Imperfect Information  

           Subgame perfect equilibrium homework: Market Entry

10. Bilateral Trade: A Static Game in Strategic Form with Complete Information

11. Involuntary Unemployment: A Dynamic Game with Uncertainty

12. Time Consistent Monetary Policy: Making Credible Commitments

13. Static Games with Incomplete Information Part 1
                and Part 2

         Homework: Trade Relations
                         Rob R. Baron and Bea Ware

14. Auctions
                1st Pay
                2nd Pay
                All Pay
                Selling State Liquor Stores

                Homework: Equivalence of Auctions
                                 All-pay Auction

           Other reading: Mester

15. Dynamic Games with Incomplete Information
                Homework: The Value of Pedigree: Angie O'Plastie and Amanda Reckonwith 
                                  Good Cars and Bad Cars

16. The Market for Lemons