Book contents
- Frontmatter
- Contents
- List of Figures and Tables
- Preface
- 1 Economic Development, Interdependence, and Incentives
- 2 Games
- 3 Development Traps and Coordination Games
- 4 Rural Poverty, Development, and the Environment
- 5 Risk, Solidarity Networks, and Reciprocity
- 6 Understanding Agrarian Institutions
- 7 Savings, Credit, and Microfinance
- 8 Social Learning and Technology Adoption
- 9 Property Rights, Governance, and Corruption
- 10 Conflict, Violence, and Development
- 11 Social Capital
- 12 The Political Economy of Trade and Development
- Appendix
- Exercises for Interested Readers
- References
- Index
Appendix
Published online by Cambridge University Press: 05 September 2012
- Frontmatter
- Contents
- List of Figures and Tables
- Preface
- 1 Economic Development, Interdependence, and Incentives
- 2 Games
- 3 Development Traps and Coordination Games
- 4 Rural Poverty, Development, and the Environment
- 5 Risk, Solidarity Networks, and Reciprocity
- 6 Understanding Agrarian Institutions
- 7 Savings, Credit, and Microfinance
- 8 Social Learning and Technology Adoption
- 9 Property Rights, Governance, and Corruption
- 10 Conflict, Violence, and Development
- 11 Social Capital
- 12 The Political Economy of Trade and Development
- Appendix
- Exercises for Interested Readers
- References
- Index
Summary
THIS APPENDIX is here to give you a little more background on the basic solution concepts and techniques used in game theory. A warning: This is only a brief overview, and it is somewhat terse. To delve into these concepts at a more satisfying level, I recommend several books that can serve as excellent introductions to game theory at the end of this section.
A game consists of two or more players, and often we index the players by a number or letter (e.g., 1, 2, 3, …, n), where n represents the number of players in a game. Each player in a game has a set of strategies. For example, in a game of peasant farmers we might represent the set of strategies available to Player 1 and Player 2 as S1 = S2 = {Beans; Coffee} in a two-player, two-strategy game where the players have the same strategies. Any combination of strategies, one by each player in the game is called a “strategy profile.” Here, each player i chooses one of the strategies in her strategy set, or chooses one particular strategy si that is part of Si. Thus a strategy profile for n players is a combination of strategies, one by each player, (s1; s2; s3; … sn). The strategy profiles in our two-player, two-strategy game would be (Beans; Beans), (Beans; Coffee), (Coffee; Beans) or (Coffee; Coffee).
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- Information
- Games in Economic Development , pp. 249 - 264Publisher: Cambridge University PressPrint publication year: 2007