Titlebook: Non-Cooperative Game Theory; Takako Fujiwara-Greve Textbook 2015 The Editor(s) (if applicable) and The Author(s), under exclusive license

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Perfect Bayesian Equilibrium,In this chapter we consider extensive-form games in which the payoff functions are not common knowledge. We introduce the concept of Perfect Bayesian Equilibrium and analyze signaling games.

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Equilibrium Refinements,,It is often the case that a game has many Nash equilibria. In this chapter, we introduce equilibrium refinements based on stabilities under small perturbations. As a famous application of sequential equilibrium, we explain the chain store paradox with incomplete information.

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Equilibrium Selection,,In this chapter, we introduce notions of payoff dominance and risk dominance, explain their meanings, and also extend the risk dominance concept to p-dominance. In addition, we illustrate how equilibrium selection is performed using the example of global games, which is relevant to many economic situations.

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Evolutionary Stability,,It is possible to talk about the stability of a strategy distribution without relying on an individual player’s choice. This is evolutionary stability. In this chapter, we give some “static” stability notions based on the payoff comparison and one dynamic stability concept based on the replicator dynamic, which is most widely used.

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Takako Fujiwara-GreveProvides a rigorous but easy-to-understand explanation of non-cooperative game theory.Is organized by equilibrium concepts, not classes of games, making clear that an equilibrium is a prediction metho

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Non-Cooperative Game Theory978-4-431-55645-9Series ISSN 2364-8279 Series E-ISSN 2364-8287

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thout objects? These are old philosophical questions that concern the ontology of space in the philosophical sense of ‘ontology’ – what is the nature of space? Cognitive science in general and arti?cial intelligence in particular are less c- cerned with the nature of things than with their mental co