Game Theory

'Game Theory' has served as a standard text for game theory courses since the publication of the First Edition in 1968. The Fourth Edition updates several recently developed subfields. It has been enlarged by adding a new section dealing with the controversial 'Monty Hall Problem', showing how the solution can be easily obtained by using game theoretic methods; rather than those of conditional probability theory. A new chapter discusses the work of recent Nobel Laureates: this includes, on the one hand, Hurwicz, Maskin and Myerson's work on mechanism design, and, on the other hand, Roth's work on auctions and two-sided matchings.