Essays in Economic Theory (Routledge Revivals) Routledge Revivals Series

Essays in Economic Theory, first published in 1983, combines two essays on game theory and its applications in economics. The first, "Learning Behavior and the Noncooperative Equilibrium", considers whether an adaptive justification, like those commonly available for the optimization models frequently employed elsewhere in economics, can be found for the Nash noncooperative equilibrium. The second essay, "A Game of Fair Division", was motivated by the desire to find attractive methods for solving allocation problems and bargaining disputes that are simple enough to provide useful alternatives to existing methods. It studies in detail one such simple method: the classical "divide-and-choose" procedure. This book will be of interest to students of economics.

Preface; Part 1: Learning Behaviour and the Noncooperative Equilibrium; 1. Introduction 2. A Simple Model of Learning Behavior 3. Extensions to the General Case 4. Simulation Experiments 5. Conclusions; Part 2: A Game of Fair Division; 1. Introduction 2. The Pure-Table Divide and Choose Game 3. The Divide and Choose Game with Production 4. The Divide and Choose Game with Cooperative Trade 5. Further Generalizations; Conclusions