COMPETITIVE ANALYSIS

Game theory, defined in the broadest sens, is a collection of mathematical models designed for the analysis of competitive situations in a large spectrum of fields. Since its creation by J. von Neumann and O. Morgenstern in 1944, game theory had shed new light on business, politics, economics, social psychology and evolutionary biology. In this book some fundamental ideas of game theory are developed in a mathematical framework and are applied to economics.These applications are still limited to what is considered to be at the heart of modern economic theory, so that the book does not contain a description of all developments in economics which are founded on game theory.