Market, Games, and Strategic Behavior (Paperback)

In his new text, Charles Holt begins each chapter with a lead-off experiment designed as an organizing device to introduce economic concepts such as the Winner's Curse, Asset Market Bubbles, and Rent Seeking. These experiments are easy to facilitate in the classroom, and may be run ?by hand? or online via an internet browser. The early chapters in Part I of the text cover the basics, providing examples that feature markets with buyers and sellers, simple two-person games, and individual lottery choice decision. Professors can choose the order in which they cover later chapter topics, including markets, bargaining, public choice, auctions, individual decisions, games, and asymmetric information.

Features
* Each chapter includes an experiment which is easy to use in class.
* The chapters are self-contained, making the format very flexible. Each chapter contains one game, carefully balancing theory and methodology.
* Mathematics is kept accessible. Experiments are typically based on parametric cases that distinguish alternate theories.

Contents
Part I. Basic Concepts: Decisions, Game Theory, and Market Equilibrium
* Introduction
* A Pit Market
* Some Simple Games: Competition, Coordination, and Guessing
* Risk and Decision Making
* Randomized Strategies

Part II. Market Experiments
* Monopoly and Cournot Markets
* Vertical Market Relationships
* Market Institutions and Power
* Collusion and Price Competition
* Market Failure Due to Unraveling: Lemons and Matching Markets
* Asset Markets and Price Bubbles

Part III. Bargaining and Behavioral Labor Economics
* Ultimatum Bargaining
* Trust, Reciprocity, and Principal-Agent Games

Part IV. Public Choice
* Voluntary Contributions
* The Volunteer's Dilemma
* Externalities, Congestion, and Common Pool Resources
* Rent Seeking
* Voting and Politics Experiments

Part V. Auctions
* Private Value Auctions
* The Takeover Game
* Common-Value Auctions and the Winner's Curse
* Multi-Unit and Combinatorial Auctions

Part VI. Behavioral Game Theory: Treasures and Intuitive Contradictions
* Multi-Stage Games
* Generalized Matching Pennies
* The Traveler's Dilemma
* Coordination Games

Part VII. Individual Decision Experiments
* Probability Matching
* Lottery Choice Anomalies
* ISO (in Search of ?)

Part VIII. Information, Learning, and Signaling
* Bayes' Rule
* Information Cascades
* Statistical Discrimination
* Signaling Games
* Prediction Markets