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Unformatted text preview: theory of repeated games (Chapter 8) has been used to illuminate social phenomena like threats and promises. The theory of the core (Chapter 13) reveals a sense in which the outcome of trading under a price system is stable in an economy that contains many agents. The boundary between pure and applied game theory is vague; some developments in the pure theory were motivated by issues that arose in applications. Nevertheless we believe that such a line can be drawn. Though we hope that this book appeals to those who are interested in applications, we stay almost entirely in the territory of "pure" theory. The art of applying an abstract model to a real-life situation should be the subject of another tome. Game theory uses mathematics to express its ideas formally. However, the game theoretical ideas that we discuss are not inherently mathemat-...
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This note was uploaded on 09/10/2011 for the course DEFR 090234589 taught by Professor Vinh during the Spring '10 term at Aarhus Universitet, Aarhus.
- Spring '10