The Successes of Game Theory
The Successes of Game Theory
Illustrates some of the successes of non‐cooperative game theory in economics. Specifically, it discusses how non‐cooperative game theory has helped economists to understand dynamic competition, credibility and reputation, cooperation based on reciprocity and the threat of punishment, and interactions in which parties hold private information, including information about their own basic motivations.
Keywords: cooperation, credibility, dynamic competition, motivation, non‐cooperative game theory, private information, punishment, reciprocity, reputation
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