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RASMUSSEN: “Index” — 2006/9/20 — 19:01 — Page 521 — #1 522 Index Absolute value, 473 second-price sealed-bid, 397 Action, 13 silent-exit, 391 Action combination, 13 Vickrey, 397 Action set, 13 Auditing, 100 Advertising, 348, 350 Authority (medium), 205 Affiliation, 425 Axelrod tournament, 169 Affine transformation, 82 Agent, 182 All-pay auction, 399 Backward induction, 129 Almost perfect information, 65 Bagehot Model, 260 Amazon auction, 391 Bandit Anonymity, 360 two-armed bandit, 60 Argentina, 1 Bankruptcy constraint, 212, 240 Ascending auction, 390 Bargaining, 409, 469 Assumptions, 2 Battle of the sexes, 28, 35, 103 Assurance game, 35 Bayesian equlibrium, 56 Asymmetric information, 51 Beer-Quiche game, 174 Auction, 127 Behavior strategy, 98 Auctions Belief all-pay, 399 posterior, 56 Amazon, 391 Beliefs, 324 ascending auction, 390 common knowledge, 49, 64 common-value, 387 complete robustness, 164 descending, 398 concordant, 49 dollar, 402 forward induction, 173 Dutch, 398 intuitive criterion, 163, 174 eBay, 391 mutual knowledge, 49 English auction, 390 out-of-equilibrium beliefs, 159 first-price, 392 passive conjectures, 160, 163 first-price sealed-bid, 392 posterior, 57 loser-pays, 402 prior, 55 open-cry auction, 390 prior beliefs, 57 open-exit auction, 390, 391 Bertrand, 90, 101, 437 private-value, 386 Best reply, 19 second-price, 397 Best response, 19, 88 RASMUSSEN: “index” — 2006/9/20 — 19:01 — page 521 — #1 522 Index Bilateral trading, 370 incentive compatibility, 139, 194, 245 Bimatrix game, 23 individual rationality constraint, 195, 203 Biology, 123, 151 interim participation, 269 Blackboxing, 3, 118 nonpooling constraint, 323 Boiling-in-oil contract, 197 nonseparating constraint, 247 Bottle Imp, The,117 participation constraint, 194, 203, 245 Boundary, 32 self-selection, 245 Bourgeois strategy, 146 Continuous function, 476 Branch, 43 Continuous strategy space, 87 Bridge, 98 Continuum, 73, 99, 476 Brouwer fixed point theorem, 484 Continuum of Nash equilibria, 76 Budget-balancing constraint, 228, 295 Contract Burning money, 173 boiling-in-oil, 197 efficiency wage, 211, 235 first-best, 194 Capacity, 468 forcing, 187 Capacity constraints, 437 full-insurance, 225 Cardinal utility, 33 linear, 187 Cascade, 61 menu of contracts, 292 Certainty, 50 second-best, 194, 237 Chainstore paradox, 129 selling the store, 199 Chatterjee–Samuelson Mechanism, 375 shifting support scheme, 199 Cheap talk, 80, 286 threshold, 187 Chicken, 99, 358 Contractible, 192 Closed interval, 474 Contraction, 476 Closed loop, 122 Contribution games, 83 Cloud, 46 Convex function, 476 Co-opting, 236 Convex set, 476 Coalition, 380 Cooperate, 34 Coalition-proof Nash equilibrium, 120 Cooperative game, 21, 88 Coarsening, 47 Coordination games, 29, 83 Coarser, 47 Correlated strategy, 80 Coase conjecture, 469 Correspondence, 476 Coinsurance, 225 Countersignalling, 345 Colonel Blotto games, 101 Cournot, 87, 94, 102, 104, 175, 433, 467, 470 Common knowledge, 49, 64, 176 Cournot–Nash equilibrium, 89 Common-value auction, 387 Cream skimming, 257 Communication, 33 Cross-checking, 87 Compact, 475 Cumulative density function, 481 Comparative statics, 449 Competition constraint, 247 Competitive fringe, 101 Decision theory, 12 Complementary inputs, 453 Decision tree, 15 Complements, strategic, 102 Deductible, 225 Complete information, 51, 53 Defect, 34 Complete robustness, 164 Descending auction, 398 Completely mixed, 70 Deviations, 34 Concave function, 476 Differential games, 99 Concordant beliefs, 49 Differentiated Bertrand game, 449, 470 Conditional likelihood, 57 Differentiation Congestion, 468 vertical differentiation, 454 Constraint Dimensionality, 132 bankruptcy, 212, 240 Discontinuous reaction function, 97 budget-balancing, 228, 295 Discoordination games, 83 capacity, 437 Discount factor, 486 competition, 247 Discount rate, 486 RASMUSSEN: “index” — 2006/9/20 — 19:01 — page 522 — #2 Index 523 Discounting, 131, 486 Equilibrium refinement, 28 Discrete strategy spaces, 87, 96 Equilibrium strategies, 18 Dollar Auction, 402 ESS, 143 Dominance, 20 Evolutionarily stable strategy, 143 stochastic, 203, 489 Evolutionary dynamics, 147 Dominance solvable, 24 Exemplary theory, 2 Dominant strategy, 20 Exemplifying theory, 2 Dominant-strategy equilibrium, 20 Existence, 95, 434, 467 Dominant-strategy mechanism, 295 Expected externality mechanism, 377 Dominated Exponential distribution, 481 weakly, 23 Extensive form, 43 Dominated strategy, 20 Extrinsic uncertainty, 80 dominates, 489 Double auction mechanism, 372 Double-sided moral hazard, 202 Feedback, 122 Duels, 77, 124 Finer, 47 Durable monopoly, 462 First-best contract, 194 Dutch auction, 398 First-mover advantage, 29, 94 Dynamic consistency, 122 First-order condition, 72 Dynamic programming, 473 First-order condition approach, 195 First-order stochastic dominance, 489 First-price auction, 392 eBay auction, 391 First-price sealed-bid auction, 392 Econometrics of estimating game theory Fixed point theorems, 473, 484 models, 99 Brouwer fixed point theorem, 484 Edgeworth paradox, 437, 440 Kakutani fixed point theorem, 485 Efficiency wages, 211, 235, 241 Focal points, 32 Efficient rationing, 437, 468 Folk theorem, 131 End node, 43 Forcing contract, 187 End point, 43 Ford, Henry, 264 English auction, 390 Forgiving, 170 Entry deterrence, 111 Forward induction, 173 epsilon equilibrium, 148 Four P’s, 93 Equilibrium, 18 Full insurance, 225 Bayesian, 56 Fully insured, 223 Bertrand equilibrium, 90 Fully revealing, 248 coalitionproof equilibrium, 120 Cournot–Nash equilibrium, 89 epsilon, 148 Game theory, 11 iterated-dominance equilibrium, 23 history, 6, 34 maximin equilibrium, 134 Game tree, 16, 43 Nash equilibrium, 26 Games perfect Bayesian equilibrium, 158, 159, 173 bimatrix games, 23 perfect Markov equilibrium, 142 Colonel Blotto games, 101 pooling equilibrium, 163, 247 contribution games, 83 separating equilibrium, 161, 163, 246, 247 cooperative games, 88 sequential equilibrium, 158 coordination games, 29, 83 Stackelberg equilibrium, 101, 123 differential games, 99 strong equilibrium, 117 discoordination games, 83 subgame perfect equilibrium, 109 matrix games, 23 weak equilibrium, 117 nonzero-sum games, 25 Weak-dominance equilibrium, 23 one-shot games, 129 Equilibrium concept, 18 timing games, 77 Equilibrium outcome, 18 two-by-two games, 81 Equilibrium path, 108, 171 variable-sum games, 25 Equilibrium point, 35 zero-sum games, 25 RASMUSSEN: “index” — 2006/9/20 — 19:01 — page 523 — #3 524 Index Gang of Four models, 167, 172 Interbuyer price discrimination, 296, 299 Generically, 476, 485 Interim participation constraints, 269 Genovese, Kitty, 83 Interquantity price discrimination, 296 Good news, 489 Interval Gratitude, 150 closed interval, 474 Greatest lower bound, 475 open interval, 474 Gresham’s law, 269 Intuitive criterion, 163, 174 Grim strategy, 130 Invade, 143 Groves Mechanism, 293, 318 Invariance, 359 Inverse-intensity rationing, 438 Invertible, 194 Harsanyi doctrine, 54 Irrationality, 123 Hawk–Dove game, 144 Iterated-dominance equilibrium, 23 Hazard rates, 490 High-to-low rationing, 437 History of game theory, 6 Kakutani fixed point theorem, 485 Hold-up potential, 218 Kyle model, 261 Hotelling location game, 446 Hotelling pricing game, 442 Lattice, 477 Least upper bound, 475 Least-cost avoider principle, 217 Imperfect information, 49 Likelihood, 57 Implicit function theorem, 186, 450 conditional, 57 Incentive compatibility constraint, 139, 194, marginal, 56, 57 245 Limit pricing, 175, 341, 342 Incomplete information, 51, 53 Linear contract, 187 Incomplete information folk theorem, 169 Linear equilibrium, 373 Increasing differences in parameters, 453, 483 Linkage principle, 427 Increasing differences in strategies, 453, 483 Location models, 441 Independence, 387 Lognormal distribution, 482 Independence of irrelevant alternatives, 360 Loser-pays auction, 402 Indifference curves, 186, 303 Low-to-high rationing, 439 Individual rationality constraint, 195, 203 Induction backward, 129 Madman theory, 123 forward, 173 Marginal likelihood, 56, 57 Infimum, 475 Marginal revenue approach, 409 Infinite horizon model, 137 Markov strategy, 98, 142 Information Marshall, Alfred, 6 almost perfect information, 65 Maskin Matching Scheme, 279, 370 asymmetric information, 51 Matrix game, 23 certainty, 50 Maximand, 478 complete information, 51, 53 Maximin equilibrium, 134 imperfect information, 49 Maximin strategy, 133 incomplete information, 51, 53 Mean-preserving spread, 478, 489 perfect information, 49 Measure zero, 478 private information, 51 Mechanism, 370 symmetric information, 51 Chatterjee–Samuelson, 375 uncertainty, 50 dominant–strategy, 295 Information partition, 47 double auction, 372 Information set, 14, 45 expected externality, 377 Informational rents, 296, 311 Mediation, 33 Informed player, 182 Menu of contracts, 292 Insurance, 203, 222, 264, 274 Metric, 478 Integration by parts, 477 Minimax payoff, 132 Intensity rationing, 437, 438 Minimax strategies, 132 RASMUSSEN: “index” — 2006/9/20 — 19:01 — page 524 — #4 Index 525 Minimax theorem, 135 Open-set problem, 24, 117 Minimax value, 132 Opportunism, 218 Mixed extension, 70 Order of play, 14, 43 Mixed strategy, 69 Ordinal utility, 33 Mixing density, 395 Out-of-equilibrium behavior, 63, 173 Modelling by example, 172 Out-of-equilibrium beliefs, 159 Monitoring, 100, 232, 238 complete robustness, 164 Monotone likehood ratio property, 203 forward induction, 173 Monty Hall, 66 intuitive criterion, 163, 174 Moral hazard, 192 passive conjectures, 163 double-sided, 202 Outcome, 15 Moral hazard with hidden knowledge, 277 Outcome matrix, 41, 64 Move, 13 Overlapping
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