Abstract: This book provides an introduction to game theory that seeks to answer all three questions: what is game theory about? How do I apply game theory? Why is game theory right? The topics covered include utility theory, backward induction, minimax theory, imperfect competition, repeated games, Bayesian decision theory, refinements of Nash equilibrium, Harsanyi's theory of incomplete information, bargaining theory, applications to ethics, coalition formation, mechanism design, and auction theory. Topics such as bargaining and imperfect competition are covered in a great amount of detail.

Keywords: game theory, Nash equilibrium, Harsanyi's theory, incomplete information, backward induction, utility, imperfect competition, information, cooperation, bargaining theory