Demystifying Game Theory

Demystifying Game Theory Anindya Sen Game Theory and Economic Modelling by David M Kreps; Clarendon Press, Oxford, Rs 130.
THE 1970s have seen the rediscovery of game theory and the marriage of game theory with the economics of uncertainty and information has given birth to a very large body of work. However, these developments in game theory have bypassed many academicians, even in the economics profession, and those who did not pick up game theory have remained deeply., suspicious of the theory. In recent years, a number of books on game theory have become available, as well as some quite useful chapters devoted to game theory in various books, like Tirole's The Theory of Industrial Organisation and the first volume of the Handbook of Industrial Organisation. But this material is usually accessible only to the technically sophisticated reader. Kreps has now written a book which attempts to provide the uninitiated with sufficient insights to make independent judgments on game theory. The book makes no prior technical demands on its reader, though it requires careful reading. Throughout the book, Kreps employs numerous examples to illustrate his points and sometimes give the reader a flavour of those arguments that cannot be developed fully within the limitations of the book. He takes pains to highlight both the achievements and failures of game theory. Since he has been at the forefront in the development of both concepts and applications, Kreps is in a unique position to come to the defence of game theory, and also act as the Devil's advocate.