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GAME THEORY

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Game theory is a fascinating subject. We all know many entertaining games, such as chess, poker, tic-tac-toe, bridge, baseball, computer games — the list is quite varied and almost endless. In addition, there is a vast area of economic games, discussed in Myerson (1991) and Kreps (1990), and the related political games, Ordeshook (1986), Shubik (1982), and Taylor (1995). The competition between firms,