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Essentials of Game Theory: A Concise, Multidisciplinary Introduction PDF

104 Pages·2008·3.913 MB·English
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MOCL003-FM MOCL003-FM.cls June3,2008 16:14 ESSENTIALS OF GAME THEORY i MOCL003-FM MOCL003-FM.cls June3,2008 16:14 iii Synthesis Lectures on Artificial Intelligence and Machine Learning Editors RonaldJ.Brachman,YahooResearch TomDietterich,OregonStateUniversity IntelligentAutonomousRobotics PeterStone 2007 AConciseIntroductiontoMultiagentSystemsandDistributedArtificialIntelligence NikosVlassis 2007 EssentialsofGameTheory:AConcise,MultidisciplinaryIntroduction KevinLeyton-BrownandYoavShoham 2008 MOCL003-FM MOCL003-FM.cls June3,2008 16:14 Copyright© 2008byMorgan&Claypool Allrightsreserved.Nopartofthispublicationmaybereproduced,storedinaretrievalsystem,ortransmittedin anyformorbyanymeans—electronic,mechanical,photocopy,recording,oranyotherexceptforbriefquotations inprintedreviews,withoutthepriorpermissionofthepublisher. EssentialsofGameTheory KevinLeyton-BrownandYoavShoham www.morganclaypool.com ISBN:9781598295931 paper ISBN:9781598295948 ebook DOI:10.2200/S00108ED1V01Y200802AIM003 APublicationintheMorgan&ClaypoolPublishersseries SYNTHESISLECTURESONARTIFICIALINTELLIGENCEANDMACHINELEARNING#3 Lecture#3 SeriesEditor:RonaldJ.Brachman,Yahoo!ResearchandTomDietterich,OregonStateUniversity LibraryofCongressCataloging-in-PublicationData SeriesISSN:1939-4608 print SeriesISSN:1939-4616 electronic iv MOCL003-FM MOCL003-FM.cls June3,2008 16:14 ESSENTIALS OF GAME THEORY A Concise, Multidisciplinary Introduction KevinLeyton-Brown UniversityofBritishColumbia,Vancouver,BC,Canada http://cs.ubc.ca/∼kevinlb YoavShoham StanfordUniversity,PaloAlto,CA,USA http://cs.stanford.edu/∼shoham M &C & M o r g a n C l a y p o o l P u b l i s h e r s v MOCL003-FM MOCL003-FM.cls June3,2008 16:14 vi ABSTRACT Game theory is the mathematical study of interaction among independent, self-interested agents. The audience for game theory has grown dramatically in recent years, and now spans disciplinesasdiverseaspoliticalscience,biology,psychology,economics,linguistics,sociology andcomputerscience–amongothers.Whathasbeenmissingisarelativelyshortintroduction tothefieldcoveringthecommonbasisthatanyonewithaprofessionalinterestingametheory is likely to require. Such a text would minimize notation, ruthlessly focus on essentials, and yet not sacrifice rigor. This Synthesis Lecture aims to fill this gap by providing a concise and accessible introduction to the field. It covers the main classes of games, their representations, andthemainconceptsusedtoanalyzethem. “This introduction is just what a growing multidisciplinary audience needs: it is concise, au- thoritative,uptodate,andclearontheimportantconceptualissues.” —RobertStalnaker,MIT,LinguisticsandPhilosophy “IwishI’dhadacomprehensive,clearandrigorousintroductiontotheessentialsofgametheory inunderonehundredpageswhenIwasstartingout.” —DavidParkes,HarvardUniversity,ComputerScience “Besidebeingconciseandrigorous,EssentialsofGameTheoryisalsoquitecomprehensive.It includestheformulationsusedinmostapplicationsinengineeringandthesocialsciences,and illustratestheconceptswithrelevantexamples.” —RobertWilson,StanfordUniversity,GraduateSchoolofBusiness “BestshortintroductiontogametheoryIhaveseen!IwishitwasavailablewhenIstartedbeing interestedinthefield!” —SilvioMicali,MIT,ComputerScience “Although written by computer scientists, this book serves as a sophisticated introduction to the main concepts and results of game theory from which other scientists, including social scientists, can greatly benefit. In eighty pages, Essentials of Game Theory formally defines key concepts, illustrated with apt examples, in both cooperative and noncooperative game theory.” —StevenBrams,NewYorkUniversity,PoliticalScience MOCL003-FM MOCL003-FM.cls June3,2008 16:14 “Thisbookwillappealtoreaderswhodonotnecessarilyhailfromeconomics,andwhowanta quickgraspofthefascinatingfieldofgametheory.Themaincategoriesofgamesareintroduced inalucidwayandtherelevantconceptsareclearlydefined,withtheunderlyingintuitionsalways provided.” —KrzysztofApt,UniversityofAmsterdam,InstituteforLogic, LanguageandComputation “To a large extent, modern behavioral ecology and behavioral economics are studied in the frameworkofgametheory.Studentsandfacultyalikewillfindthisconcise,rigorousandclear introductiontothemainideasingametheoryimmenselyvaluable.” —MarcusFeldman,StanfordUniversity,Biology “Thisuniquebookistodaythebestshorttechnicalintroductiontogametheory.Accessibleto a broad audience, it will prove invaluable in artificial intelligence, more generally in computer science,andindeedbeyond.” —MosheTennenholtz,Technion,IndustrialEngineeringandManagement “Excerptedfromamuch-anticipated,cross-disciplinarybookonmultiagentsystems,thisterse, incisive and transparent book is the ideal introduction to the key concepts and methods of game theory for researchers in several fields, including artificial intelligence, networking, and algorithms.” —VijayVazirani,GeorgiaInstituteofTechnology,ComputerScience “Theauthorsadmirablyachievetheiraimofprovidingascientistorengineerwiththeessentials ofgametheoryinatextthatisrigorous,readableandconcise.” —FrankKelly,UniversityofCambridge,StatisticalLaboratory KEYWORDS Game theory, multiagent systems, competition, coordination, Prisoner’s Dilemma: zero-sum games, Nash equilibrium, extensive form, repeated games, stochastic games, Bayesian games, coalitionalgames vii MOCL003-FM MOCL003-FM.cls June3,2008 16:14 viii MOCL003-FM MOCL003-FM.cls June3,2008 16:14 To my parents Anne and David Leyton-Brown... —KLB To my parents Leila and Havis Stein... —YS ...with much love and thanks for all that you have taught us ix MOCL003-FM MOCL003-FM.cls June3,2008 16:14 x

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