Business decisions are rarely made in a competitive vacuum. A manager’s ability to maximize a firm’s value on behalf of shareholders may be hamstrung by an inability to raise finance capital, disruption in the flow of critical raw materials, shortages of skilled labor, capacity constraints, labor unrest, insufficient warehouse space, more. Managers who are able to put themselves in to the shoes of rivals are more likely to successfully achieve the firm’s objectives than those who do not. This volume is an introduction to game theory, the systematic analysis of decision making in interactive settings. Game theory identifies a decision maker’s best response to situations involving move and counter move. Thomas J. Webster is professor of economics in the Department of Finance and Economics of Pace University’s Lubin School of Business in NYC.

Wonderpedia

Wrong incentive compatibility frameworks are at the root of the current global economic recession. Game theory is at the core of modern economic analysis, and Thomas J. Webster’s textbook is the first step to understand it. It is simple in exercises, yet deep in concepts.

Augusto Schianchi, Universita Degli Studi di Parma

Webster does a great job of relating different strands of game theory to business applications. The book helps managers understand how to anticipate and optimally react to their rivals’ actions.

David J. Gabel, Queens College

This is an excellent text, clearly written with practical end of chapter questions. It is perfect for teaching students who may not have a sophisticated mathematical background. It makes a major contribution in making game theory accessible to a broad audience, and is a pleasure to read.

Joan Nix, Queens College