Game Theory Unlocks New Strategies for Economic Decision-Making
The book "Game Theory for Applied Economists" by Robert Gibbons introduces a powerful tool called game theory to people in economics who want to understand how to create or analyze game models. The focus is on real-world economic applications rather than just theoretical concepts. The book shows how to turn informal descriptions of decision situations into formal game problems for analysis. It covers different types of games and equilibriums, demonstrating that similar issues arise in various economic areas. The book emphasizes applications in labor, macroeconomics, and other practical fields, rather than just industrial organization.