6/17/23, 8:56 AM Tadelis - Solution Manual
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Solution Manual
Game Theory: An Introduction
Steve Tadelis
January 31, 2013
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,6/17/23, 8:56 AM Tadelis - Solution Manual
This is page ii
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ABSTRACT This Slution Manual is incomplete. It will be updated every 2-3 weeks
to add the solutions to problems as they become available. A complete version is
expected by March 15, 2013.
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,6/17/23, 8:56 AM Tadelis - Solution Manual
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Contents
I Rational Decision Making 2
1 The Single-Person Decision Problem 3
2 Introducing Uncertainty and Time 13
II Static Games of Complete Information 44
3 Preliminaries 45
4 Rationality and Common Knowledge 51
5 Pinning Down Beliefs: Nash Equilibrium 61
6 Mixed Strategies 95
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, 6/17/23, 8:56 AM Tadelis - Solution Manual
Contents 1
III Dynamic Games of Complete Information 113
7 Preliminaries 115
8 Credibility and Sequential Rationality 133
9 Multi-Stage Games 163
10 Repeated Games 179
11 Strategic Bargaining 197
IV Static Games of Incomplete Information 206
12 Bayesian Games 207
13 Auctions and Competitive Bidding 215
14 Mechanism Design 221
V Dynamic Games of Incomplete Information 222
15 Sequential Rationality with Incomplete Information 223
16 Signaling Games 231
17 Building a Reputation 239
18 Information Transmission and Cheap Talk 243
about:blank 4/209
This is page i
Printer: Opaque
Solution Manual
Game Theory: An Introduction
Steve Tadelis
January 31, 2013
about:blank 1/209
,6/17/23, 8:56 AM Tadelis - Solution Manual
This is page ii
Printer: Opaque
ABSTRACT This Slution Manual is incomplete. It will be updated every 2-3 weeks
to add the solutions to problems as they become available. A complete version is
expected by March 15, 2013.
about:blank 2/209
,6/17/23, 8:56 AM Tadelis - Solution Manual
This is page iii
Printer: Opaque
Contents
I Rational Decision Making 2
1 The Single-Person Decision Problem 3
2 Introducing Uncertainty and Time 13
II Static Games of Complete Information 44
3 Preliminaries 45
4 Rationality and Common Knowledge 51
5 Pinning Down Beliefs: Nash Equilibrium 61
6 Mixed Strategies 95
about:blank 3/209
, 6/17/23, 8:56 AM Tadelis - Solution Manual
Contents 1
III Dynamic Games of Complete Information 113
7 Preliminaries 115
8 Credibility and Sequential Rationality 133
9 Multi-Stage Games 163
10 Repeated Games 179
11 Strategic Bargaining 197
IV Static Games of Incomplete Information 206
12 Bayesian Games 207
13 Auctions and Competitive Bidding 215
14 Mechanism Design 221
V Dynamic Games of Incomplete Information 222
15 Sequential Rationality with Incomplete Information 223
16 Signaling Games 231
17 Building a Reputation 239
18 Information Transmission and Cheap Talk 243
about:blank 4/209