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In recent decades game theory—the mathematics of rational decision-making by interacting individuals—has assumed a central place in our understanding of capitalist markets, the evolution of social behavior in animals, and even the ethics of altruism and fairness in human beings. With game theory’s ubiquity, however, has come a great deal of misunderstanding. Critics of the contemporary social sciences view it as part of an unwelcome trend toward the marginalization of historicist and interpretive styles of inquiry, and many accuse its proponents of presenting a thin and empirically dubious view of human choice. The World the Game Theorists Made seeks to explain the ascendency of game theory, focusing on the poorly understood period between the publication of John von Neumann and Oscar Morgenstern’s seminal Theory of Games and Economic Behavior in 1944 and the theory’s revival in economics in the 1980s. Drawing on a diverse collection of institutional archives, personal correspondence and papers, and interviews, Paul Erickson shows how game theory offered social scientists, biologists, military strategists, and others a common, flexible language that could facilitate wide-ranging thought and debate on some of the most critical issues of the day.
Comprises lectures given at Tel Aviv University and Oxford University in 1990.
This first volume in a three-volume exposition of Shubik's vision of "mathematical institutional economics" explores a one-period approach to economic exchange with money, debt, and bankruptcy. This is the first volume in a three-volume exposition of Martin Shubik's vision of "mathematical institutional economics"--a term he coined in 1959 to describe the theoretical underpinnings needed for the construction of an economic dynamics. The goal is to develop a process-oriented theory of money and financial institutions that reconciles micro- and macroeconomics, using as a prime tool the theory of games in strategic and extensive form. The approach involves a search for minimal financial institutions that appear as a logical, technological, and institutional necessity, as part of the "rules of the game." Money and financial institutions are assumed to be the basic elements of the network that transmits the sociopolitical imperatives to the economy. Volume 1 deals with a one-period approach to economic exchange with money, debt, and bankruptcy. Volume 2 explores the new economic features that arise when we consider multi-period finite and infinite horizon economies. Volume 3 will consider the specific role of financial institutions and government, and formulate the economic financial control problem linking micro- and macroeconomics.
Steven J. Brams' Theory of Moves, though based on the classical theory of games, proposes changes in its rules to render it a truly dynamic theory. By postulating that players think ahead not just to the immediate consequences of making moves, but also to the consequences of countermoves to these moves, counter-countermoves, and so on, it extends the strategic analysis of conflicts into the more distant future. It elucidates the role that different kinds of power - moving, order and threat - may have on conflict outcomes, and it also shows how misinformation affects player choices. Applied to a series of cases drawn from politics, economics, sociology, fiction and the Bible, the theory provides not only a parsimonious explanation of their outcomes, but also shows why they unfolded as they did. This book, which assumes no prior knowledge of game theory or special mathematical background, will be of interest to scholars and students throughout the social sciences.
The evolving modern world is characterized by two opposing trends: integration and segregation. On the one hand, we witness strong forces for segregation on the basis of nationality, ethnicity, religion, and culture in the former Soviet Union, the former Czechoslovakia, the former Yugoslavia, as well as in Northern Ireland, Spain, and Canada. These forces are quite strong and, in some cases, violent. On the other hand, the European Union and NAFTA represent the tendency for integration motivated primarily by economic considerations (such as gains from trade and scale economies). In fact, these opposing trends can be explained by the concepts developed in modern club theory, local public finance, and international trade.
Determinants of firm and market organization; Analysis of market behavior; Empirical methods and results; International issues and comparision; government intervention in the Marketplace.
Competition, Efficiency and Welfare contains a collection of papers in honor of Manfred Neumann. This collection was prepared as a tribute to a teacher and scholar, whose accomplishments have enriched various fields of economics. The magnitude of his interests is reflected in the breadth of topics covered in this volume: industrial economics, competition policy and related topics. However, if one unifying principle runs through Manfred Neumann's work, it is the belief in the power of competition. Born on May 16, 1933, Manfred Neumann studied economics at the University of Cologne. He graduated in 1960. In 1969 Manfred Neumann was appointed Professor of Economics at Nürnberg University. He was Dean of the Faculty of Economics and Social Sciences of the University of Erlangen-Nürnberg, President of the European Association for Research in Industrial Economics (EARIE) and Chairman of Industrial Organization Study Group of the Verein für Sozialpolitik. Most of his professional career has been spent at Nürnberg, where he has helped to make the Economic Institute one of the leading research centers in Industrial Organization. He has also been involved in various advisory activities. The volume contains 18 essays. The first twelve are grouped into four categories: Innovation and R&D (Part I), Cartels (Part II), Mergers and Merger Policy (Part III), and Methodological Issues in Industrial Organization (Part IV). These papers fall within the bounds of industrial economics, which has been Manfred Neumann's primary research interest throughout his career. Part V includes two papers on theories of international trade, which has been a recurring topic of interest for Manfred Neumann through the years. The last three papers look at broader policy and macroeconomic issues. Contributors to this volume include Karl Aiginger, David B. Audretsch, Paul A. Geroski, Stephen Martin and Dennis Mueller.
'...the history of economic theory at its best.'-EASTERN ECONOMIC JOURNAL
Is the state a necessity, a convenience, or neither? It enforces collective choices in which some override the preferences and dispose of the resources of others. Moreover, collective choice serves as its own source of authority and preempts the space it wishes to occupy. The morality and efficacy of the result are perennial questions central to political philosophy. In Against Politics Jasay takes a closely reasoned stand, based on modern rational choice arguments, for rejecting much of mainstream thought about these matters. In the first part of the book, Excuses, he assesses the standard justification of government based consent, the power of constitutions to achieve limited government, and ideas for reforming politics. In the second part, Emergent Solutions , he explores the force of first principles to secure liberties and rights and some of the potential of spontaneous conventions for generating ordered anarchy. Written with clarity and simplicity, this powerful volume represents the central part of Jasay's recent work. Fully accessible to the general reader, it should stimulate the specialist reader to fresh thought.