This work explains that equilibrium is the long-run outcome of a process in which non-fully rational players search for optimality over time. The models they e×plore provide a foundation for equilibrium theory and suggest ways for economists to evaluate and modify traditional equilibrium concepts.

Quantal Response Equilibrium presents a stochastic theory of games that unites probabilistic choice models developed in psychology and statistics with the Nash equilibrium approach of classical game theory. Nash equilibrium assumes precise and perfect decision making in games, but human behavior is inherently stochastic and people realize that the behavior of others is not perfectly predictable. In contrast, QRE models choice behavior as probabilistic and extends classical game theory into a more realistic and useful framework with broad applications for economics, political science, management, and other social sciences. Quantal Response Equilibrium spans the range from basic theoretical foundations to examples of how the principles yield useful predictions and insights in strategic settings, including voting, bargaining, auctions, public goods provision, and more. The approach provides a natural framework for estimating the effects of behavioral factors like altruism, reciprocity, risk aversion, judgment fallacies, and impatience. New theoretical results push the frontiers of models that include heterogeneity, learning, and well-specified behavioral modifications of rational choice and rational expectations. The empirical relevance of the theory is enhanced by discussion of data from controlled laboratory experiments, along with a detailed users' guide for estimation techniques. Quantal Response Equilibrium makes pioneering game-theoretic methods and interdisciplinary applications available to a wide audience.

This book introduces game theory as a means to conceptualize, model, and analyze cyber deception. Drawing upon a collection of deception research from the past 10 years, the authors develop a taxonomy of six species of defensive cyber deception. Three of these six species are highlighted in the context of emerging problems such as privacy against ubiquitous tracking in the Internet of things (IoT), dynamic honeynets for the observation of advanced persistent threats (APTs), and active defense against physical denial-of-service (PDoS) attacks. Because of its uniquely thorough treatment of cyber deception, this book will serve as a timely contribution and valuable resource in this active field. The opening chapters introduce both cybersecurity in a manner suitable for game theorists and game theory as appropriate for cybersecurity professionals. Chapter Four then guides readers through the specific field of defensive cyber deception. A key feature of the remaining chapters is the development of a signaling game model for the species of leaky deception featured in honeypots and honeyfiles. This model is expanded to study interactions between multiple agents with varying abilities to detect deception. Game Theory for Cyber Deception will appeal to advanced undergraduates, graduate students, and researchers interested in applying game theory to cybersecurity. It will also be of value to researchers and professionals working on cybersecurity who seek an introduction to game theory.

The first textbook to explain the principles of epistemic game theory.

Computer science and economics have engaged in a lively interaction over the past fifteen years, resulting in the new field of algorithmic game theory. Many problems that are central to modern computer science, ranging from resource allocation in large networks to online advertising, involve interactions between multiple self-interested parties. Economics and game theory offer a host of useful models and definitions to reason about such problems. The flow of ideas also travels in the other direction, and concepts from computer science are increasingly important in economics. This book grew out of the author's Stanford University course on algorithmic game theory, and aims to give students and other newcomers a quick and accessible introduction to many of the most important concepts in the field. The book also includes case studies on online advertising, wireless spectrum auctions, kidney exchange, and network management.

**Also an Academy Award–winning film starring Russell Crowe and Jennifer Connelly—directed by Ron Howard** The powerful, dramatic biography of math genius John Nash, who overcame serious mental illness and schizophrenia to win the Nobel Prize. “How could you, a mathematician, believe that extraterrestrials were sending you messages?” the visitor from Harvard asked the West Virginian with the movie-star looks and Olympian manner. “Because the ideas I had about supernatural beings came to me the same way my mathematical ideas did,” came the answer. “So I took them seriously.” Thus begins the true story of John Nash, the mathematical genius who was a legend by age thirty when he slipped into madness, and who—thanks to the selflessness of a beautiful woman and the loyalty of the mathematics community—emerged after decades of ghostlike existence to win a Nobel Prize for triggering the game theory revolution. The inspiration for an Academy Award–winning movie, Sylvia Nasar’s now-classic biography is a drama about the mystery of the human mind, triumph over adversity, and the healing power of love.

This textbook offers a comprehensive overview of the main developments in game theory since the 1950s. It provides a wide variety of examples and exercises, mostly drawn from applications in economics, to illustrate key concepts and ideas in the field. The book should prove an invaluable reference tool for teachers, students, and researchers of microeconomics and game theory.