Focusing on deterministic models in discrete time, this concise yet rigorous textbook provides a clear and systematic introduction to the theory and application of dynamic economic models. It guides students through the most popular model structures and solution concepts, from the simplest dynamic economic models through to complex problems of optimal policy design in dynamic general equilibrium frameworks. Chapters feature theorems and practical hints, and seventy-five worked examples highlight the various methods and results that can be applied in dynamic economic models. Notation and formulation is uniform throughout, so students can easily discern the similarities and differences between various model classes. Chapters include more than sixty exercises for students to self-test their analytical skills, and password-protected solutions are available for instructors on the companion website. Assuming no prior knowledge of dynamic economic analysis or dynamic optimization, this textbook is ideal for advanced students in economics.

Born of a belief that economic insights should not require much mathematical sophistication, this book proposes novel and parsimonious methods to incorporate ignorance and uncertainty into economic modeling, without complex mathematics. Economics has made great strides over the past several decades in modeling agents' decisions when they are incompletely informed, but many economists believe that there are aspects of these models that are less than satisfactory. Among the concerns are that ignorance is not captured well in most models, that agents' presumed cognitive ability is implausible, and that derived optimal behavior is sometimes driven by the fine details of the model rather than the underlying economics. Compte and Postlewaite lay out a tractable way to address these concerns, and to incorporate plausible limitations on agents' sophistication. A central aspect of the proposed methodology is to restrict the strategies assumed available to agents.

Game theory explains how to make good choices when different decision makers have conflicting interests. The classical approach assumes that decision makers are committed to making the best choices for themselves regardless of the effect on others, but such an approach is less appropriate when cooperation, compromise and negotiation are important. This book describes conditional games, a form of game theory that accommodates multiple stakeholder decision-making scenarios where cooperation and negotiation are significant issues and where notions of concordant group behavior are important. Using classical binary preference relations as a point of departure, the book extends the concept of a preference ordering that permits stakeholders to modulate their preferences as functions of the preferences of others. As these conditional preferences propagate through a group of decision makers, they create social bonds that lead to notions of group concordance. This book is intended for all students and researchers of decision theory and game theory.

This book presents a comprehensive analysis of tax consequences in an oligopolistic market. It provides the reader with a systematic and precise way of understanding the research content of tax incidence. A major feature of the book is its analysis of tax incidence from both domestic and international oligopolies. Then, by examining various oligopoly models, it approaches the essence of domestic and multilateral tax issues. Starting with the general theory of commodity tax incidence in an oligopoly, the topics addressed in this book include tax reform, environmental regulation, and policy coordination in international oligopolies. In addition to the usual oligopoly model, managerial oligopoly, the public pricing problem for firms in an oligopoly, and mixed oligopoly are dealt with. By presenting individual issues and explaining the relevance of each topic, this book is highly recommended for readers interested in policymaking and the global market in relation to the interdisciplinary developments of public economics, regional economics, and international economics. This book is also valuable as an advanced textbook on applied economics.

All of life is a game, and evolution by natural selection is no exception. The evolutionary game theory developed in this 2005 book provides the tools necessary for understanding many of nature's mysteries, including co-evolution, speciation, extinction and the major biological questions regarding fit of form and function, diversity, procession, and the distribution and abundance of life. Mathematics for the evolutionary game are developed based on Darwin's postulates leading to the concept of a fitness generating function (G-function). G-function is a tool that simplifies notation and plays an important role developing Darwinian dynamics that drive natural selection. Natural selection may result in special outcomes such as the evolutionarily stable strategy (ESS). An ESS maximum principle is formulated and its graphical representation as an adaptive landscape illuminates concepts such as adaptation, Fisher's Fundamental Theorem of Natural Selection, and the nature of life's evolutionary game.

In everyday life we must often reach decisions while knowing that the outcome will not only depend on our own choice, but also on the choices of others. These situations are the focus of epistemic game theory. Unlike classical game theory, it explores how people may reason about their opponents before they make their final choice in a game. Packed with examples and practical problems based on stories from everyday life, this is the first textbook to explain the principles of epistemic game theory. Each chapter is dedicated to one particular, natural way of reasoning. The book then shows how each of these ways of reasoning will affect the final choices that can rationally be made and how these choices can be found by iterative procedures. Moreover, it does so in a way that uses elementary mathematics and does not presuppose any previous knowledge of game theory.

When should you adopt an aggressive business strategy? How do we make decisions when we don't have all the information? What makes international environmental cooperation possible? Game theory is the study of how we make a decision when the outcome of our moves depends on the decisions of someone else. Economists Ivan and Tuvana Pastine explain why, in these situations, we sometimes cooperate, sometimes clash, and sometimes act in a way that seems completely random. Stylishly brought to life by award-winning cartoonist Tom Humberstone, Game Theory will help readers understand behaviour in everything from our social lives to business, global politics to evolutionary biology. It provides a thrilling new perspective on the world we live in.

This elementary introduction was developed from lectures by the authors on business mathematics and the lecture "Analysis and Linear Algebra" for Bachelor's degree programmes

This book provides a contemporary treatment of quantitative economics, with a focus on data science. The book introduces the reader to R and RStudio, and uses expert Hadley Wickham's tidyverse package for different parts of the data analysis workflow. After a gentle introduction to R code, the reader's R skills are gradually honed, with the help of "your turn" exercises. At the heart of data science is data, and the book equips the reader to import and wrangle data, (including network data). Very early on, the reader will begin using the popular ggplot2 package for visualizing data, even making basic maps. The use of R in understanding functions, simulating difference equations, and carrying out matrix operations is also covered. The book uses Monte Carlo simulation to understand probability and statistical inference, and the bootstrap is introduced. Causal inference is illuminated using simulation, data graphs, and R code for applications with real economic examples, covering experiments, matching, regression discontinuity, difference-in-difference, and instrumental variables. The interplay of growth related data and models is presented, before the book introduces the reader to time series data analysis with graphs, simulation, and examples. Lastly, two computationally intensive methods-generalized additive models and random forests (an important and versatile machine learning method)-are introduced intuitively with applications. The book will be of great interest to economists-students, teachers, and researchers alike-who want to learn R. It will help economics students gain an intuitive appreciation of applied economics and enjoy engaging with the material actively, while also equipping them with key data science skills.

This unified treatment of game theory focuses on finding state-of-the-art solutions to issues surrounding the next generation of wireless and communications networks. Future networks will rely on autonomous and distributed architectures to improve the efficiency and flexibility of mobile applications, and game theory provides the ideal framework for designing efficient and robust distributed algorithms. This book enables readers to develop a solid understanding of game theory, its applications and its use as an effective tool for addressing wireless communication and networking problems. The key results and tools of game theory are covered, as are various real-world technologies including 3G networks, wireless LANs, sensor networks, dynamic spectrum access and cognitive networks. The book also covers a wide range of techniques for modeling, designing and analysing communication networks using game theory, as well as state-of-the-art distributed design techniques. This is an ideal resource for communications engineers, researchers, and graduate and undergraduate students.

ONAG, as the book is commonly known, is one of those rare publications that sprang to life in a moment of creative energy and has remained influential for over a quarter of a century. Originally written to define the relation between the theories of transfinite numbers and mathematical games, the resulting work is a mathematically sophisticated but eminently enjoyable guide to game theory. By defining numbers as the strengths of positions in certain games, the author arrives at a new class, the surreal numbers, that includes both real numbers and ordinal numbers. These surreal numbers are applied in the author's mathematical analysis of game strategies. The additions to the Second Edition present recent developments in the area of mathematical game theory, with a concentration on surreal numbers and the additive theory of partizan games.

This gentle introduction to logic and model theory is based on a systematic use of three important games in logic: the semantic game; the Ehrenfeucht Fraisse game; and the model existence game. The third game has not been isolated in the literature before but it underlies the concepts of Beth tableaux and consistency properties. Jouko Vaananen shows that these games are closely related and in turn govern the three interrelated concepts of logic: truth, elementary equivalence and proof. All three methods are developed not only for first order logic but also for infinitary logic and generalized quantifiers. Along the way, the author also proves completeness theorems for many logics, including the cofinality quantifier logic of Shelah, a fully compact extension of first order logic. With over 500 exercises this book is ideal for graduate courses, covering the basic material as well as more advanced applications.

The definitive guide to the game theoretic and probabilistic underpinning for Bitcoin's security model. Discusses, how Bitcoin works, includes an overview of probability and game theory and provides a quantitative analysis for Bitcoin security under attack modes. Explains, possible attacks on Bitcoin as its influence grows and includes breakdown of how the how the block reward schedule and adoption will affect the vulnerability of the network.

This book addresses complex real-world problems with recent techniques. It comprises selected papers from the XX. congress APDIO held in Tomar, Portugal, in July 2019. The subject of the book is the application of operational research methodologies and techniques to address complex real problems. Readers will find interesting results and applications of operational research methods and techniques in the wide variety of the addressed problems. Of particular interest are the applications of, among others, linear, nonlinear and mixed-integer programing, multiobjective optimization, metaheuristics and hybrid heuristics, multicriteria decision analysis, data envelopment analysis, clustering techniques and decision support systems, in different areas such as supply chain management, scheduling problems, production management, logistics, energy, telecommunications and finance and health. In most chapters of the book, the described problems, methods and methodologies will be illustrated by auxiliary figures and tables, as well as algorithms. The main benefit of this book is to present the latest trends in operational research methods and methodologies by top Portuguese and international researchers. The book will present a wide scope of complex real-world applications addressed by recent theoretical techniques that aim to narrow the gap between academic researchers and practitioners.

The business environment is changing more rapidly than ever before, and new business ideas are emerging. This book discusses applying insights from design thinking to craft novel strategies that satisfy customer needs, make use of the available capabilities, integrate requirements for financial success and provide competitive advantage. It guides readers through the jungle encountered when developing a strategy for sustained growth and profitability. It addresses strategy design in a holistic way by applying abductive reasoning, iteratively observing customers and focusing on empathy, as well as prototyping ideas and using customers to validate them. Uniquely applying insights from design thinking to strategy, this book is a must-read for graduates, MBAs and executives interested in innovation and strategy, as well as corporate strategists, innovation managers, business analysts and consultants.

This book is devoted to problems of stochastic control and stopping that are time inconsistent in the sense that they do not admit a Bellman optimality principle. These problems are cast in a game-theoretic framework, with the focus on subgame-perfect Nash equilibrium strategies. The general theory is illustrated with a number of finance applications.In dynamic choice problems, time inconsistency is the rule rather than the exception. Indeed, as Robert H. Strotz pointed out in his seminal 1955 paper, relaxing the widely used ad hoc assumption of exponential discounting gives rise to time inconsistency. Other famous examples of time inconsistency include mean-variance portfolio choice and prospect theory in a dynamic context. For such models, the very concept of optimality becomes problematic, as the decision maker's preferences change over time in a temporally inconsistent way. In this book, a time-inconsistent problem is viewed as a non-cooperative game between the agent's current and future selves, with the objective of finding intrapersonal equilibria in the game-theoretic sense. A range of finance applications are provided, including problems with non-exponential discounting, mean-variance objective, time-inconsistent linear quadratic regulator, probability distortion, and market equilibrium with time-inconsistent preferences. Time-Inconsistent Control Theory with Finance Applications offers the first comprehensive treatment of time-inconsistent control and stopping problems, in both continuous and discrete time, and in the context of finance applications. Intended for researchers and graduate students in the fields of finance and economics, it includes a review of the standard time-consistent results, bibliographical notes, as well as detailed examples showcasing time inconsistency problems. For the reader unacquainted with standard arbitrage theory, an appendix provides a toolbox of material needed for the book.

This book presents an interdisciplinary approach to conflict solution focusing on a very specific type of conflict, retributive conflicts . It is unique in the treatment of these and how relative measurement is used to find equilibrium solutions. The authors present an alternative process to address the Israeli-Palestinian conflict. They do so in two ways that are different from past efforts. The first is by formally structuring the conflict and the second is the manner in which discussions were conducted and conclusions drawn. The approach will help create a solution and provide negotiators with a unique pathway to consider the thorny issues and corresponding concessions underlying the deliberations, together with their implementation. The Analytic Hierarchy Process (AHP) provides a way to conflict solution with the participation of negotiators for the parties. It is a positive approach that makes it possible to reason and express feelings and judgments with numerical intensities to derive priorities. With the assistance of panels of Israeli participants and Palestinian participants brought together in 2006 to 2017, AHP was applied for the first time in a group setting to the Palestinian-Israeli conflict. The process makes it clear that moderation in different degrees by both sides is essential to arrive at acceptable agreements on concessions proposed and agreed upon by both sides.

This book, following the three published volumes of the book, provides the main purpose to collect research papers and review papers to provide an overview of the main issues, results, and open questions in the cutting-edge research on the fields of modeling, optimization, and dynamics and their applications to biology, economy, energy, industry, physics, psychology and finance. Assuming the scientific relevance of the presenting innovative applications as well as merging issues in these areas, the purpose of this book is to collect papers of the world experts in mathematics, economics, and other applied sciences that is seminal to the future research developments. The majority of the papers presented in this book is authored by the participants in The Joint Meeting 6th International Conference on Dynamics, Games, and Science - DGSVI - JOLATE and in the 21st ICABR Conference. The scientific scope of the conferences is focused on the fields of modeling, optimization, and dynamics and their applications to biology, economy, energy, industry, physics, psychology, and finance. Assuming the scientific relevance of the presenting innovative applications as well as merging issues in these areas, the purpose of the conference is to bring together some of the world experts in mathematics, economics, and other applied sciences that reinforce ongoing projects and establish future works and collaborations.

This textbook provides a one-semester introduction to mathematical economics for first year graduate and senior undergraduate students. Intended to fill the gap between typical liberal arts curriculum and the rigorous mathematical modeling of graduate study in economics, this text provides a concise introduction to the mathematics needed for core microeconomics, macroeconomics, and econometrics courses. Chapters 1 through 5 builds students' skills in formal proof, axiomatic treatment of linear algebra, and elementary vector differentiation. Chapters 6 and 7 present the basic tools needed for microeconomic analysis. Chapter 8 provides a quick introduction to (or review of) probability theory. Chapter 9 introduces dynamic modeling, applicable in advanced macroeconomics courses. The materials assume prerequisites in undergraduate calculus and linear algebra. Each chapter includes in-text exercises and a solutions manual, making this text ideal for self-study.

This contributed volume presents the state-of-the-art of games and dynamic games, featuring several chapters based on plenary sessions at the ISDG-China Chapter Conference on Dynamic Games and Game Theoretic Analysis, which was held from August 3-5, 2017 at the Ningbo campus of the University of Nottingham, China. The chapters in this volume will provide readers with paths to further research, serving as a testimony to the vitality of the field. Experts cover a range of theory and applications related to games and dynamic games, with topics including: Dynamically stable cooperative provision of public goods under non-transferable utility Strongly time-consistent solutions in cooperative dynamic games Incentive Stackelberg games for stochastic systems Static and inverse Stackelberg games in political economy Cournot and Betrand competition on symmetric R&D networks Numerical Nash equilibria using curvilinear multistart algorithm Markov chain approximation numerical scheme for infinite-horizon mean field games Frontiers in Games and Dynamic Games will appeal to an interdisciplinary audience of researchers, practitioners, and graduate students interested in games and dynamic games.

This book, published in honor of Professor Laurent Praly on the occasion of his 65th birthday, explores the responses of some leading international authorities to new challenges in nonlinear and adaptive control. The mitigation of the effects of uncertainty and nonlinearity - ubiquitous features of real-world engineering and natural systems - on closed-loop stability and robustness being of crucial importance, the contributions report the latest research into overcoming these difficulties in: autonomous systems; reset control systems; multiple-input-multiple-output nonlinear systems; input delays; partial differential equations; population games; and data-driven control. Trends in Nonlinear and Adaptive Control presents research inspired by and related to Professor Praly's lifetime of contributions to control theory and is a valuable addition to the literature of advanced control.

This book contains international perspectives that unifies the themes of strategic management, decision theory, and data science. It contains thought-provoking presentations of case studies backed by adequate analysis adding significance to the discussions. Most of the decision-making models in use do take due advantage of collection and processing of relevant data using appropriate analytics oriented to provide inputs into effective decision-making. The book showcases applications in diverse fields including banking and insurance, portfolio management, inventory analysis, performance assessment of comparable economic agents, managing utilities in a health-care facility, reducing traffic snarls on highways, monitoring achievement of some of the sustainable development goals in a country or state, and similar other areas that showcase policy implications. It holds immense value for researchers as well as professionals responsible for organizational decisions.

Few branches of mathematics have been more influential in the social sciences than game theory. In recent years, it has become an essential tool for all social scientists studying the strategic behaviour of competing individuals, firms and countries. However, the mathematical complexity of game theory is often very intimidating for students who have only a basic understanding of mathematics. Insights into Game Theory addresses this problem by providing students with an understanding of the key concepts and ideas of game theory without using formal mathematical notation. The authors use four very different topics (college admission, social justice and majority voting, coalitions and co-operative games, and a bankruptcy problem from the Talmud) to investigate four areas of game theory. The result is a fascinating introduction to the world of game theory and its increasingly important role in the social sciences.

Insurance Economics brings together the economic analysis of decision making under risk, risk management and demand for insurance among individuals and corporations, objectives pursued and management tools used by insurance companies, the regulation of insurance, and the division of labor between private and social insurance. Appropriate both for advanced undergraduate and graduate students of economics, management, and finance, this text provides the background required to understand current research. Predictions derived from theoretical arguments are not merely stated, but also related to empirical evidence. Throughout the book, conclusions summarize key results, helping readers to check their knowledge and comprehension. Issues discussed include paradoxes in decision making under risk and attempts at their resolution, moral hazard and adverse selection including the possibility of a "death spiral", and future challenges to both private and social insurance such as globalization and the availability of genetic information. This second edition has been extensively revised. Most importantly, substantial content has been added to represent the evolution of risk-related research. A new chapter, Insurance Demand II: Nontraditional Approaches, provides a timely addition in view of recent developments in risk theory and insurance. Previous discussions of Enterprise Risk Management, long-term care insurance, adverse selection, and moral hazard have all been updated. In an effort to expand the global reach of the text, evidence and research from the U.S. and China have also been added.

Few branches of mathematics have been more influential in the social sciences than game theory. In recent years, it has become an essential tool for all social scientists studying the strategic behaviour of competing individuals, firms and countries. However, the mathematical complexity of game theory is often very intimidating for students who have only a basic understanding of mathematics. Insights into Game Theory addresses this problem by providing students with an understanding of the key concepts and ideas of game theory without using formal mathematical notation. The authors use four very different topics (college admission, social justice and majority voting, coalitions and co-operative games, and a bankruptcy problem from the Talmud) to investigate four areas of game theory. The result is a fascinating introduction to the world of game theory and its increasingly important role in the social sciences.