Author Description

Product Description The authors are both mathematical economists; one teaches in an economics department and the other in a business school The latter is also editor of a prestigious economics journal and the author of 12 books in pure and applied mathematics. Because of their prestige as scholars and teachers,the National Science Foundation awarded them a grant to develop an interdisciplinary course, combining decision theory and game theory, for primary use in business and economics departments.The heart of business, and much of economics, is decision making. This book is a fully self-contained treatment of almost everything that can be called decision theory, from classical optimization, often covered in courses in mathematical economics and management science, to modern game theory, thecornerstone of modern managerial (micro) economics which provides the foundation for management strategy and competitive analysis. Only a knowledge of simple calculus and probability is required. Although some coverage in later chapters requires extra mathematical knowledge, that knowledge isdeveloped as an integral part of the text. This book will be a key text for all professors who want to take a serious look at a decision theory, whether they are teaching undergraduate game theory or undergraduate or MBA courses in optimization and game theory. With careful selection of topics not to intimidate students, the authors show the integration of decision and game theory, as part of the same body of knowledge and demonstrates that unity. They move from the problem of the decision-maker, to progressively more complex decision problems, such assequential rationality, culminating in topics of great immediate interest, auctions and bargaining. By building chapters squarely on what goes before, the authors avoid any unnecessary confusion in presenting a technical subject such as game theory, where ideas are often carelessly and callouslypresented out of proper sequence. The first chapter