The rise of game theory around the middle of the twentieth century has profoundly affected the way economic theory is practised. Game theory provides a general analytical tool for theorizing on parts of the economy where strategic considerations loom large. This volume is a collection of Kaushik Basu’s papers on game theory and, more generally, strategic analysis. It includes papers in both pure and applied theory. The theoretical papers lay greater emphasis on the philosophical foundations of rational and strategic behaviour rather than on the mathematical basis of game theory. They deal with questions such as: can social order be achieved entirely through the pursuit of selfish individual aims or are social norms and a commitment to some deontic principles necessary? What role does higher knowledge of interpersonal rationality play in guiding human behaviour? The applied papers range over topics in the organization and modelling of government behaviour, topics in industrial organization theory, such as entry deterrence, psychology and pricing, and collusion and antitrust legislation. This collection will be of immense interest to professional economists, students of economics, policy-makers, and economic journalists.
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