Finance Game Theory

The importance of strategic behavior in the human and social world is increasingly recognized in theory and practice. As a result, game theory has emerged as a fundamental instrument in pure and applied research. It has greatly enhanced our understanding in decision making. The discipline of game theory studies decision making in an interactive environment. It draws on mathematics, statistics, operations research, engineering, biology, economics, political science and other subjects. In canonical form, the game takes place when an individual pursues an objective in a situation in which other individuals concurrently pursue other (possibly conflicting, possibly overlapping) objectives and at the same time the objectives cannot be reached by individual actions of one decision maker

An introduction to game theory, complete with step-by-step tools and detailed examples.
This book offers condensed breakdowns of game-theory concepts. Specifically, this textbook provides “tools” or “recipes” to solve different classes of games.

The developments within the computationally and numerically oriented ar­ eas of Operations Research, Finance, Statistics and Economics have been sig­ nificant over the past few decades. Each area has been developing its own computer systems and languages that suit its needs, but there is relatively little cross-fertilization among them yet. This volume contains a collection of papers that each highlights a particular system, language, model or paradigm from one of the computational disciplines, aimed at researchers and practitioners from the other fields. The 15 papers cover a number of relevant topics: Models and Modelling in Operations Research and Economics, novel High-level and Object-Oriented approaches to programming, through advanced uses of Maple and MATLAB, and applications and solution of Differential Equations in Finance. It is hoped that the material in this volume will whet the reader's appetite for discovering and exploring new approaches to old problems, and in the longer run facilitate cross-fertilization among the fields. We would like to thank the contributing authors, the reviewers, the publisher, and last, but not least, Jesper Saxtorph, Anders Nielsen, and Thomas Stidsen for invaluable technical assistance.