June 26, 2000 Index, 3rd edition. Games and Information "41d" indicates that the concept is defined on page 41, "33n" that the entry is in an endnote, and "54p" that the entry is in a homework problem. Articles and books are indexed separately, in the bibliography. This index was prepared by the author, not by a research assistant or by the publisher. Action combination 13d Action set 13d Action 13d Additively separable 130 Advantages first-mover 29 last-mover 300 second-mover 37p Adverse selection 161, 211-39 Advertising 289n, 291p Affiliated variables 338n Affine transformation 76 xxx Agent 162d Almost always 396, 404-06 Almost perfect information 63dn Alternating Offers game 299, 320 Annuity 395, Anonymity condition 271 Argmax 394 Assessment 140 Assurance game 35n Asymmetric information 49d,50 Auctions 323-339 categories 324 common-value 324, 331 descending 327 Dutch 327 English 325 first-price 325 open-exit 325 private-value 324,330 second-price 327,337 Auditing Game I, II, III 79, 86n Authority 184p Axelrod tournament 151, 156n Backward induction 110 Bagehot model 226 Bank loans 153, 194, 231 Bankruptcy constraint 186, 209p Bargaining 295-322, 165, 169 Alternating Offers game 299, 320 bargaining power 165, 169, 196 Splitting a Pie game 296 take-it-or-leave-it offer 165 Battle of the Bismarck Sea game 21, 34n Battles of the Sexes game 28, 35n, 89p, 157p Bayes's Rule 55d, 64p Bayesian equilibrium 54 Beer-Quiche game 155n Behavior strategy 84n Beliefs Concordant 47d Out-of-equilibrium 143, 155n Posterior 55 Prior 54 Updating 55 Benoit-Krishna game 134p Bertrand equilibrium 35n, 343, 367n, 370p Best reply 19d Best response 19d, 82 Bid-ask spread 226 Bilateral Trading games I, II, III, and IV 309, 321n Bimatrix game 34n Biology 106n, 125, 133n, 289n Blackboxing 100 Boiling in oil contract 175, 182n Boundary 32 Bounded set 70 Bourgeois strategy 128 Boxed Pigs game 25, 35 Branch 40d Bridge card game 85n Broadway Game I 174 II 178 Brouwer fixed-point theorem 404 Budget-balancing constraint 202, 207n, 262 Buyout, entry for 386, 392p Calculus 394, 399, 400 Capacity constraints 368n, 387, 345 Cardinal utility 34n, 76 Certain information 47d Chainstore paradox 110, 129 Cheap talk 75 Chatterjee-Samuelson mechanism 315 Chicken game 71, 85n Closed set 70, 394, 395 Civic Duty game 78 Closed-loop 105n Cloud 44 Coalition 319n Coalitionproofness 103 Coarsening 45d Coase Conjecture 369n Coase Theorem 170 Co-insurance 200 Colonel Blotto games 87n Combination 395 Combination, strategy 17d, 33n Commitment 29, 80, 117, 237p Common knowledge 47d, 62n, 63nd, 158p In Entry Deterrence IV and V Common-value auction 324, 331 Communication 33, 75, 105, 32 Compact set 395 Comparative statics 357 Competition constraint 121, 213 Competitive fringe 87n Complementary inputs 360 Complete information 50d, 51 Complete robustness 146 Completely mixed strategy 67d Concave function 395 Concordant beliefs 47d Conditional likelihood 56 Congestion 368n Constraints bankruptcy 186, 209p competition 121, 213 incentive compatibility 121, 173, 213 nonpooling 213 participation 173, 181n, 213, 233n self selection 213 Continuous function 395 Continuous strategies 81, 100 Continuous time 85n Continuum 395 Continuum of players 69, 85, 303 Continuum of equilibria 72, 207n, 296, 306 Contractible variable 170 Contraction mapping 395 Contracts boiling-in-oil 175, 182n first-best 172d, 246 forcing 167 linear 167 pooling 142, 145, 213d second-best 172d selling-the-store 178, 183p threshold 167 Contribution games 77 Convex function 396 Convex set 173, 396 Cooperative games 21, 319n Co-opting 205n Coordination games 29, 35n, 77 Copayment 200 Corner solution 72 Correlated strategies 74 Correlated-value auction 324 Correspondence 396 Cournot model 30, 81, 87n, 156p, 340, 367n, 370p Cream skimming 224 Credible threat 94 Cumulative density function 400 Customer Switching Costs game 123 Dangerous Coordination game 30 Decision theory 14 Decision tree 14 Deductible 200 Density 400 Derivatives, calculus 394, 399, 400 Descending auction 327 Determinants 399 Deviation 33n Differential games 87n Dimensionality condition 114, 131n Direct incentive-compatible mechanism 315 Disagreement point 297 Discontinuity Discoordination games 37p, 77 Discount factor 406 Discount rate 406 Discounting 73, 299, 406-08 in bargaining 301 in the Folk Theorem 113 Distribution 400 exponential 400 lognormal 400 normal 400 uniform 400 Dollar Auction game 336n Domain 396 Dominance-solvable 23d Dominance, stochastic 408 Dominant diagonal condition 361 Dominant strategy 19d Dominant-strategy equilibrium 20d Dominant-strategy mechanism 262 Dominated strategy 19d, 61 Double auction mechanism 311 Double-sided moral hazard 179n Dry Cleaners game 14 Duelling games 74 Duopoly 30, 81, 87n, 156p, 340, 367n, 370p Durable monopoly 362, 369n Dutch auction 327, 336 Dynamic consistency 105n Dynamic game 90 Edgeworth paradox 345 Education Game I 268 II-IV 271 V 277 VI 278 VII 281 Efficiency wage 181n, 185, 205n, 210p, 230 Efficient rationing 367n Elmer's Appetite 64p Emotions 101, 132n End node (end point) 40d English auction 325 Entry deterrence 372-392 Entry Deterrence game 106p, 134p I 93 II and III 139 IV and V 147, 158p Epsilon equilibrium 130n Equilibrium 18d continua 72, 207n, 296, 306 epsilon 130n existence 70, 225, 281 fully revealing 213, 246 implausible 91, 143 multiple 18 Pareto-dominant 28, 37p partially revealing 213 Equilibrium concept 18d coalitionproof 103 dominant-strategy 20d evolutionarily stable strategies 125d, 135p iterated dominance 23d, 118 maximin 116 Nash 26d, 36p, 54, 100 perfect bayesian 140d, 155 sequential 140d Stackelberg 30, 83, 87n, 106n subgame perfect 91d, 137 trembling-hand-perfect 139 Equilibrium outcome 18 Equilibrium path 89d Equilibrium refinement 28 forward induction 158p intuitive criterion 145, 155n Equilibrium strategy 18 Evolutionary dynamics 128 Evolutionarily stable strategy (ESS) 125d, 135p Exemplifying theory 2 Existence of equilibrium 70, 225, 281 Exotic refinements 155n Expected externality mechanism 316, 321n Expected utility 48, 63n Expensive Talk Game 157p Exponential distribution 400 Extensive form 40d, 94, 155n Extrinsic uncertainty 74 Fairness 101, 298 Fat-cat effect 390n Finer information partition 45d First-best contract 172d, 246 outcome 182p First-mover advantage 29 First-order condition approach 173, 181n First-order stochastic dominance 408 First-price auction 325 Fixed-dash theorem 403 Focal point 31-33, 36n, 89p Folk Theorem 112d, 120, 131n Follow the Leader game I 39 II 49 III 51 Forcing contract 167 Ford, Henry, wages 23 Forgiving strategy 152 Forward induction 158p Free rider problem 378 Fully insured 197 Fully revealing equilibrium 213, 246 Function 396 Functional forms 400 Game theory history 1-2, 6-7n, 51 method 2 Game tree 15, 40d Games--in general cooperative vs. noncooperative 21 zero- vs variable-sum 25d, 34n Games--specific games Alternating Offers 299, 320 Auditing Game I, II, III 79, 86n Battle of the Bismarck Sea21, 34n Beer-Quiche 155n Benoit-Krishna 134p Bilateral Trading I, II, III, IV 309, 321n Boxed Pigs 25, 35 Broadway Game I, II 174, 178 Chicken 71, 85n Civic Duty 78 Colonel Blotto 87n Cournot Game 81 Customer Switching Costs 123 Dangerous Coordination 30 Discoordination 37p Dollar Auction 336n The Dry Cleaners Game 14 Durable Monopoly 362 Education I, II, III, IV, V, VI, VII 268, 271, 277, 278, 281 Entry for Buyout 386 Expensive Talk 157p Follow the Leader I, II, III The Free Rider Problem in Takeovers 378 General 2x2 game 75 Government Procurement 255 Grab the Dollar 73, 135p Greenmail to Attract White Knights 381 Hawk-Dove 127 The Hotelling Location Game 354 The Hotelling Pricing Game 350 Insurance Game I , II, III 197, 222 The Iteration Path Game 25 Lemons I, II, III, IV 215, 218 Limit Pricing as Signal Jamming 285 Matching Pennies 88p The Minimax Illustration Game 116 Modeller's Dilemma 27 Nuisance Suits I, II, III 96 Patent Race for a New Market 374 Patent Race for an Old Market 376 Phd Admissions 144 The Png Settlement Game 59 The Police Game 86n Predatory Pricing 383 Product Quality 119 Production Game I, II, III, IV, V, VI,VIa,VII 164, 169, 211, 242 Repossession Game I, II, III 194 The Salesman Game 244 Splitting a Pie 296 The Swiss Cheese Game 24 Testing 232 Underpricing New Stock Issues 283 The Utopian Exchange Economy Game 126 The War of Attrition 72 The Welfare Game 67 Gang of Four 149 Generically 396, 404-06 Good news 409 Government Procurement game 255 Grab the Dollar game 73, 135p Greek alphabet 395 Greenmail 380 Grim strategy 111d, 135p Groves mechanism 261, 264n Harsanyi doctrine 53, 62 Harsanyi transformation 51, 63n Hawk-Dove game 127 Hidden actions 161 Hidden knowledge 161, 179n, 241 Hold-up potential 193 Hotelling models 350 Imperfect information 47d, 63n Imperfectly separating equilibrium 213 Implicit function theorem 358 Implementing mechanism 241 Incentive compatibility 121, 173, 213 Incomplete information 50d, 51, 97 Incomplete information folk theorem 151d Independence of irrelevant alternatives 297 Individual rationality constraint 181n Infimum 394 Infinite-horizon model 119, 130n Infinitely repeated game 119 Information partition 45d Information set 43d Informational rents 248, 260 Informed player 162 Innovation 372, 390n Insurance 46, 99, 182n, 196, 222, 230, 235n, 237p Insurance Game I and II 197 III 222 Intensity rationing 345d, 367n Interbuyer price discrimination 248, 250 Interquantity price discrimination 248 Intuitive criterion 145, 155n Invariance 297 Inverse-intensity rationing 345d Invertible function 172 Iterated dominance 21, 105n Iterated-dominance equilibrium 23d, 118 Iteration Path Game 25 Joint Ventures game 65p Kakutani fixed-point theorem 404 Kyle Model of Market Microstructure 228 Lagrange multiplier 396 Last-mover advantage 300 Lattice 396 Law 59, 95, 107p, 191, 266p Least-cost-avoider Lemons Game 265n I and II 215, 234n III and IV 218, 219, 234n Limit pricing 157p, 285 Linear contract 167 Linear equilibrium 229, 313 Location models 349, 369n Lognormal distribution 400 Lower semicontinuous correspondence 397 Lucky Executive Game 186 Macroeconomics 36n, 105n Malice 101 Marginal likelihood 55 Market microstructure 225 Markov strategy 123d Matching Pennies game 88p Matrix game 34n Maximand 397 Maximin equilibrium 116 Maximin strategy 115d Mean-preserving spread 409 Measure zero 397, 404-06 Mechanism 240-66, 308-18 Mediation 33, 314 Menu of contracts 246 Metric 397 Metric space 395, 397 Minimax criterion 116 Minimax Illustration Game 116 Minimax payoff 114d Minimax strategy 114d Minimax Theorem 116 Minimax value 114d Mixed extension 67d Mixed strategy 66-81, 237p, 287 the payoff-equating method 71 correlated strategies 74 versus randomizing 80 Modeller's Dilemma game 27 Monitoring 86n, 207p, 208p Monotone likelihood ratio property 181n Monty Hall Problem 64p Moral hazard 132n, 161-210 Moral hazard with hidden knowledge 241, 263n Most-favored-customer clause 370n Move 13d Multiple equilibria 18 Mutation 129 Mutual knowledge 47 Myerson-Satterthwaite model 308, 322p Nash bargaining solution 296, 319n, 321p Nash equilibrium 26d, 36p, 54, 100 Nature 13d Niceness 152 Nixon and the Madman Theory 105n Node 40d, 62n Noisy duel 74 Nonlinear pricing 249, 252 Noncooperative game theory 21 Nonpooling constraint 213 Nonresponders 368n Nonseparating constraint 213 Nonzero-sum game 25d Normal distribution 400 Normal form of a game 39d, 94 Nuisance Suits I to III 96 Oligopoly 342 One-dash price equilibrium 312 One-shot game 110 One-sided Prisoner's Dilemma 118, 132n One-to-one mapping 172, 397 Onto 397 Open set 394, 397 Open-exit auction 325 Open-loop 05n Open-set problem 99 Opportunism 193 Order of play 40 Ordinal utility 34n Out-of-equilibrium behavior 307 Out-of-equilibrium beliefs 143, 155n forward induction 158p intuitive criterion 145, 155n passive conjectures 142, 145 Outcome 14d Outcome matrix 39d, 62n Overlapping generations model 122, 133p Overtaking criterion 130 Pareto dominance 28, 35nd, 37p, 104 Pareto frontier in bargaining 297 Pareto optimality 82 Pareto perfection 103 Pareto Perfection Puzzle game 104 Partially pooling equilibrium 213 Partially revealing equilibrium 213 Partially separating equilibrium 213 Participation constraint 173, 181n, 213, 233n Partition, information 45d Passive conjectures 142, 145 Patent races 373, 390n, 392p Path 40d Payoff 12d Payoff-equating method for mixed strategies 71 Perfect bayesian equilibrium 140d, 155 Perfect equilibrium 91, 105n, 108p Perfect information 47d, 63n, 196 Perfect Markov equilibrium 124d Perfect price discrimination 248, 250 Perfect recall assumption 84n Permutation 397 Perpetuity 398 PhD Admissions game 144 Player 12d Pliny and the Freedman's Trial 107p Png Settlement Game 59 Poker example for information 50 Police game 86n Politics 88p, 106p Pooling 142, 145, 213d Posterior belief 55 Precommitment 117 Predatory pricing 93, 383, 391p Predecessor node 40d Pre-emption game 73 Present discounted value 406-08 Price discrimination 247, 263n, 266p Price dispersion 230 Principal 162d, 179n Principal-agent model 161 Prior belief 54 Prisoner's Dilemma game 20, 33n, 34n repeated 110, 134p, 150 one-sided 118 Private information 50 Private-value auction 324, 330 Probability density 400 Procurement 255 Product differentiation 349-57 Product quality 119, 132n, 134p, 188, 205n, 290p Production Game 164 I 165 II-V 169 VI-VIa 211 VII 242 Proportional rationing 345d Provokable strategy 152 Pseudo-player 13d Public goods 203, 261 Pure strategy 66d Quadratic formula 399 Quality 119, 132n, 134p, 188, 205n, 290p Quasi-concave 398 Randomization 80 Range 398 Ranked Coordination game 29, 32, 89p Rao-Blackwell Theorem 181n Ratchet effect 263n Rate-of-return regulation 255 Rationalizable strategy 35n Rationing 345 Efficient 367n Intensity 345d, 367n Inverse-Intensity 345d Proportional 345d Reaction function 83, 348 Real time 42 Realization of a game 13 Refinements forward induction 158p intuitive criterion145, 155n of equilibrium 28 of information 45d, 179 Regression to the mean 58, 64n, 204n Renegotiation 103, 193 Rent-seeking 73, 338p, 376, 392p Repeated games 109-136 Prisoner's Dilemma 110, 134p, 150 Repossession Game I, II, III 194 Reputation 117, 132n Gang of Four model 149 for irrationality105n in product quality 119, 132n Reservation utility 165 Reservation wage 165 Reserve prices in auctions 337n Residual claimant 178 Responder 368n Revelation Principle 243, 263n Revenue-equivalence in auctions 328 Risk 46, 65p, 182n, 196, 330, 408-10 Risk-aversion 207n, 221, 408 Risk-neutrality 408 Rules of the game 12 Running from the Gestapo game 88p Salesman Game 244 Samaritan's Dilemma 67 Screening 161, 277 Second-best contract 172d Second-mover advantage 37p Second-order stochastic dominance 408 Second-price auction 327, 336 Security value 114d Self-selection constraint 213 Selling-the-store contract 178, 183p Semi-separating equilibrium 213 Separability 181n, 363 Separating equilibrium 143, 145, 213d, 246 Sequential equilibrium 140d Sequential-move game 38 Sequential rationality 92 Serially undominated 23 Service flow 362 Settlement range in litigation 98 Shapley value 319n Share auction 337n Shifting supports 177 Side payments 21 Signal jamming 285 Signalling 161, 267-92 two signals 282 versus screening 161, 277 Silent duel 74 Simultaneous-move games 38 Single-crossing property 249, 270, 280 Singleton information set 45d, 47 Sleeping patent 378 Solution concept 18 Splitting a Pie game 296 Stability 83, 87n Stackelberg 30, 83, 87n, 106n Starting node 40d State of the world (state of Nature) 53d State-space diagram 196, 223, 237p, 238p Stochastic dominance 408 Strategic complement 360, 368n Strategic form of a game 39d, 94 Strategic substitute 368n Strategically equivalent auctions 328 Strategy 16d equilibrium strategy 18 grim strategy 111d, 135p Markov strategy 123d Tit-for-tat 112d, 151 trigger strategy 131n versus action 16 Strategy combination 17d, 33n Strategy set 16d Strategy space 16d, 87n Strict (strong) 398 Subgame 91d, 105n Subgame perfect equilibrium 91d, 137 Successor node 40d Sufficient statistic condition 175, 181n Sunk costs 99 Sunspot model 74 Supergame 132nd Supermodularity 359, 401 Support of a distribution 398 Supremum 394 Swiss Cheese Game 24 Switching costs 123 Symmetric information 49d Synergism 368n Take-it-or-leave-it offer 165 Takeovers 378 Team theory 206n Team 202d, 209p Tender Trap game 35n Testing 232, 237n Threat point 297 Threats 94, 108p Three-step procedure 173 Three-Way Duel game 106p Threshold contract 167 Time consistency 105n Time line 42 Time-separable 363 Tit-for-tat strategy 112d, 151 Topology 398 Tournament 188, 205n, 207n Tremble 92 Tremble Game 92 Trembling-hand perfect 139 Trigger strategy 131n Truthtelling. constraint 243 Two-by-two game 20,34 Two-sided asymmetry 320n Type of a player 53d Uncertainty of information 48d Underpricing New Stock Issues game 283 Uniform distribution 400 Uninformed player 162 Uniqueness of equilibrium 18, 130n Unravelling 242, 263n, 265p Upper semicontinuous correspondence 397, 398 Utopian Exchange Economy game 126 Valuation in auctions 324 Value in auctions 324 Variable-sum game 25d Vector 398 Verifiability 170 Vickrey auction 327 Von Neumann-Morgenstern utility 48, 63n Voting Paradox game 89p War of attrition 72, 85n Weak 398 Weak Nash equilibrium 27 Weakly dominated strategy 22d Welfare Game 67 Winner's curse 331, 337n Yardstick competition 188 Zero-sum game 25d,34n