Twenty Lectures On Algorithmic 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.

This accessible introduction features case studies in online advertising, spectrum auctions, kidney exchange, and network management.

An analysis of the loss in performance caused by selfish, uncoordinated behavior in networks. Most of us prefer to commute by the shortest route available, without taking into account the traffic congestion that we cause for others. Many networks, including computer networks, suffer from some type of this "selfish routing." In Selfish Routing and the Price of Anarchy, Tim Roughgarden studies the loss of social welfare caused by selfish, uncoordinated behavior in networks. He quantifies the price of anarchy—the worst-possible loss of social welfare from selfish routing—and also discusses several methods for improving the price of anarchy with centralized control. Roughgarden begins with a relatively nontechnical introduction to selfish routing, describing two important examples that motivate the problems that follow. The first, Pigou's Example, demonstrates that selfish behavior need not generate a socially optimal outcome. The second, the counterintiuitve Braess's Paradox, shows that network improvements can degrade network performance. He then develops techniques for quantifying the price of anarchy (with Pigou's Example playing a central role). Next, he analyzes Braess's Paradox and the computational complexity of detecting it algorithmically, and he describes Stackelberg routing, which improves the price of anarchy using a modest degree of central control. Finally, he defines several open problems that may inspire further research. Roughgarden's work will be of interest not only to researchers and graduate students in theoretical computer science and optimization but also to other computer scientists, as well as to economists, electrical engineers, and mathematicians.

This accessible introduction features case studies in online advertising, spectrum auctions, kidney exchange, and network management.

The latest in algorithmic game theory, with contributions from all the leading researchers.

Introduces exciting new methods for assessing algorithms for problems ranging from clustering to linear programming to neural networks.

We live in a highly connected world with multiple self-interested agents interacting and myriad opportunities for conflict and cooperation. The goal of game theory is to understand these opportunities. This book presents a rigorous introduction to the mathematics of game theory without losing sight of the joy of the subject. This is done by focusing on theoretical highlights (e.g., at least six Nobel Prize winning results are developed from scratch) and by presenting exciting connections of game theory to other fields such as computer science (algorithmic game theory), economics (auctions and matching markets), social choice (voting theory), biology (signaling and evolutionary stability), and learning theory. Both classical topics, such as zero-sum games, and modern topics, such as sponsored search auctions, are covered. Along the way, beautiful mathematical tools used in game theory are introduced, including convexity, fixed-point theorems, and probabilistic arguments. The book is appropriate for a first course in game theory at either the undergraduate or graduate level, whether in mathematics, economics, computer science, or statistics. The importance of game-theoretic thinking transcends the academic setting—for every action we take, we must consider not only its direct effects, but also how it influences the incentives of others.

Game Theory 101: The Complete Textbook is a no-nonsense, games-centered introduction to strategic form (matrix) and extensive form (game tree) games. From the first lesson to the last, this textbook introduces games of increasing complexity and then teaches the game theoretical tools necessary to solve them. Quick, efficient, and to the point, Game Theory 101: The Complete Textbook is perfect for introductory game theory, intermediate microeconomics, and political science.