Understanding Strategic Interaction

Strategic interaction occurs whenever it depends on others what one finally obtains: on markets, in firms, in politics etc. Game theorists analyse such interaction normatively, using numerous different methods. The rationalistic approach assumes perfect rationality whereas behavioral theories take into account cognitive limitations of human decision makers. In the animal kingdom one usually refers to evolutionary forces when explaining social interaction. The volume contains innovative contributions, surveys of previous work and two interviews which shed new light on these important topics of the research agenda. The contributions come from highly regarded researchers from all over the world who like to express in this way their intellectual inspiration by the Nobel-laureate Reinhard Selten.

Game theory, the formalized study of strategy, began in the 1940s by asking how emotionless geniuses should play games, but ignored until recently how average people with emotions and limited foresight actually play games. This book marks the first substantial and authoritative effort to close this gap. Colin Camerer, one of the field's leading figures, uses psychological principles and hundreds of experiments to develop mathematical theories of reciprocity, limited strategizing, and learning, which help predict what real people and companies do in strategic situations. Unifying a wealth of information from ongoing studies in strategic behavior, he takes the experimental science of behavioral economics a major step forward. He does so in lucid, friendly prose. Behavioral game theory has three ingredients that come clearly into focus in this book: mathematical theories of how moral obligation and vengeance affect the way people bargain and trust each other; a theory of how limits in the brain constrain the number of steps of "I think he thinks . . ." reasoning people naturally do; and a theory of how people learn from experience to make better strategic decisions. Strategic interactions that can be explained by behavioral game theory include bargaining, games of bluffing as in sports and poker, strikes, how conventions help coordinate a joint activity, price competition and patent races, and building up reputations for trustworthiness or ruthlessness in business or life. While there are many books on standard game theory that address the way ideally rational actors operate, Behavioral Game Theory stands alone in blending experimental evidence and psychology in a mathematical theory of normal strategic behavior. It is must reading for anyone who seeks a more complete understanding of strategic thinking, from professional economists to scholars and students of economics, management studies, psychology, political science, anthropology, and biology.

The two essays in this classic work by sociologist Erving Goffman deal with the calculative, gamelike aspects of human interaction. Goffman examines the strategy of words and deeds; he uses the term "strategic interaction" to describe gamelike events in which an individual's situation is fully dependent on the move of one's opponent and in which both players know this and have the wit to use this awareness for advantage. Goffman aims to show that strategic interaction can be isolated analytically from the general study of communication and face-to-face interaction. The first essay addresses expression games, in which a participant spars to discover the value of information given openly or unwittingly by another. The author uses vivid examples from espionage literature and high-level political intrigue to show how people mislead one another in the information game. Both observer and observed create evidence that is false and uncover evidence that is real. In "Strategic Interaction," the book's second essay, action is the central concern, and expression games are secondary. Goffman makes clear that often, when it seems that an opponent sets off a course of action through verbal communication, he really has a finger on your trigger, your chips on the table, or your check in his bank. Communication may reinforce conduct, but in the end, action speaks louder. Those who gamble with their wits, and those who study those who do, will find this analysis important and stimulating.

It is impossible to understand modern economics without knowledge of the basic tools of gametheory and mechanism design. This book provides a graduate-level introduction to the economic modeling of strategic behavior. The goal is to teach Economics doctoral students the tools of game theory and mechanism design that all economists should know.

The two essays in this classic work by sociologist Erving Goffman explore the calculative, gamelike aspects of human interaction.

In an earlier era, the communication field was dominated by the study of mediated and unmediated message effects during which considerable research focused on the attitudinal and action consequences of exposure to messages. A more catholic purview of the communication process exists today. This more encompassing perspective does not deny the importance of studying message effects, but raises the additional question of how individuals generate messages in the first place. While the earlier era of communication research was dominated by studies that focused on attitude and behavior change as primary dependent variables, such variables as message comprehension have begun to emerge in this new era. The focus on communication and cognition has led, paradoxically, to a more intense focus on social interaction processes. The theory and research presented in this volume seeks to strike a balance between the internal workings of the individual cognitive system on the one hand and the outer world of social interaction on the other. Whether or not the theory and research stands the test of time, it is clear that complete cognitive accounts of social interaction cannot confine themselves to mere descriptions of the cognitive structures and processes that are responsible for message production and comprehension. Explicit links must be made between these cognitive structures and processes and the workings of social interaction. This work takes a modest step in that direction.

Since its original publication in 2000, Game Theory Evolving has been considered the best textbook on evolutionary game theory. This completely revised and updated second edition of Game Theory Evolving contains new material and shows students how to apply game theory to model human behavior in ways that reflect the special nature of sociality and individuality. The textbook continues its in-depth look at cooperation in teams, agent-based simulations, experimental economics, the evolution and diffusion of preferences, and the connection between biology and economics. Recognizing that students learn by doing, the textbook introduces principles through practice. Herbert Gintis exposes students to the techniques and applications of game theory through a wealth of sophisticated and surprisingly fun-to-solve problems involving human and animal behavior. The second edition includes solutions to the problems presented and information related to agent-based modeling. In addition, the textbook incorporates instruction in using mathematical software to solve complex problems. Game Theory Evolving is perfect for graduate and upper-level undergraduate economics students, and is a terrific introduction for ambitious do-it-yourselfers throughout the behavioral sciences. Revised and updated edition relevant for courses across disciplines Perfect for graduate and upper-level undergraduate economics courses Solutions to problems presented throughout Incorporates instruction in using computational software for complex problem solving Includes in-depth discussions of agent-based modeling

A leading international security strategist offers a compelling new way to "think about the unthinkable." The cold war ended more than two decades ago, and with its end came a reduction in the threat of nuclear weapons—a luxury that we can no longer indulge. It's not just the threat of Iran getting the bomb or North Korea doing something rash; the whole complexion of global power politics is changing because of the reemergence of nuclear weapons as a vital element of statecraft and power politics. In short, we have entered the second nuclear age. In this provocative and agenda-setting book, Paul Bracken of Yale University argues that we need to pay renewed attention to nuclear weapons and how their presence will transform the way crises develop and escalate. He draws on his years of experience analyzing defense strategy to make the case that the United States needs to start thinking seriously about these issues once again, especially as new countries acquire nuclear capabilities. He walks us through war-game scenarios that are all too realistic, to show how nuclear weapons are changing the calculus of power politics, and he offers an incisive tour of the Middle East, South Asia, and East Asia to underscore how the United States must not allow itself to be unprepared for managing such crises. Frank in its tone and farsighted in its analysis, The Second Nuclear Age is the essential guide to the new rules of international politics.