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GAME THEORY
RELAUNCHED
Edited by Hardy Hanappi
Game Theory Relaunched
http://dx.doi.org/10.5772/2563
Edited by Hardy Hanappi
Contributors
Hardy Hanappi, Riccardo Alberti, Atulya K. Nagar, Eizo Akiyama, Ryuichiro Ishikawa, Mamoru
Kaneko, J. Jude Kline, Naima Saeed, Odd I. Larsen, Sheng Zeng, Emmanuel Fernandez, Alberto
Garcia-Diaz, Dong-Ju Lee, Mohamed Baslam, Rachid El-Azouzi, Essaid Sabir, Loubna Echabbi,
El-Houssine Bouyakhf, Senka Hadzic, Shahid Mumtaz, Jonathan Rodriguez, Hisao Kameda,
Anjiao Wang, Zhongxing Ye, Yucan Liu, Dariusz G. Mikulski, Antoniou Josephina, Lesta
Papadopoulou Vicky, Libman Lavy, Pitsillides Andreas, David Schneider, A.M. Kowalski, A.
Plastino, M. Casas, Alireza Chakeri, Nasser Sadati, Guy A. Dumont, Paul A. Wagner
Published by InTech
Janeza Trdine 9, 51000 Rijeka, Croatia
Copyright © 2013 InTech
All chapters are Open Access distributed under the Creative Commons Attribution 3.0 license,
which allows users to download, copy and build upon published articles even for commercial
purposes, as long as the author and publisher are properly credited, which ensures maximum
dissemination and a wider impact of our publications. After this work has been published by
InTech, authors have the right to republish it, in whole or part, in any publication of which they
are the author, and to make other personal use of the work. Any republication, referencing or
personal use of the work must explicitly identify the original source.
Notice
Statements and opinions expressed in the chapters are these of the individual contributors and
not necessarily those of the editors or publisher. No responsibility is accepted for the accuracy
of information contained in the published chapters. The publisher assumes no responsibility for
any damage or injury to persons or property arising out of the use of any materials,
instructions, methods or ideas contained in the book.
Publishing Process Manager Oliver Kurelic
Typesetting InTech Prepress, Novi Sad
Cover InTech Design Team
First published March, 2013
Printed in Croatia
A free online edition of this book is available at www.intechopen.com
Additional hard copies can be obtained from orders@intechopen.com
Game Theory Relaunched, Edited by Hardy Hanappi
p. cm.
ISBN 978-953-51-1078-1
Contents
Preface IX
Section 1 Game Theory in the Social Sciences 1
Chapter 1 The Neumann-Morgenstern Project –
Game Theory as a Formal Language
for the Social Sciences 3
Hardy Hanappi
Chapter 2 Can Deterrence Lead to Fairness? 27
Riccardo Alberti and Atulya K. Nagar
Chapter 3 Inductive Game Theory:
A Simulation Study of Learning a Social Situation 55
Eizo Akiyama, Ryuichiro Ishikawa,
Mamoru Kaneko and J. Jude Kline
Chapter 4 A Tale of Two Ports: Extending the Bertrand
Model Along the Needs of a Case Study 77
Naima Saeed and Odd I. Larsen
Section 2 Game Theory in Engineering 105
Chapter 5 A Game Theoretic Approach Based Adaptive
Control Design for Sequentially Interconnected
SISO Linear Systems 107
Sheng Zeng and Emmanuel Fernandez
Chapter 6 Models for Highway Cost Allocation 135
Alberto Garcia-Diaz and Dong-Ju Lee
Chapter 7 A Game Theoretic Analysis of Price-QoS Market Share in
Presence of Adversarial Service Providers 157
Mohamed Baslam, Rachid El-Azouzi, Essaid Sabir,
Loubna Echabbi and El-Houssine Bouyakhf
VI Contents
Chapter 8 Cooperative Game Theory
and Its Application in Localization Algorithms 173
Senka Hadzic, Shahid Mumtaz and Jonathan Rodriguez
Section 3 Game-Theoretic Mathematics 189
Chapter 9 Models of Paradoxical Coincident Cost Degradation
in Noncooperative Networks 191
Hisao Kameda
Chapter 10 On the Long-Run Equilibria
of a Class of Large Supergames 215
Anjiao Wang, Zhongxing Ye and Yucan Liu
Chapter 11 Cooperative Trust Games 233
Dariusz G. Mikulski
Chapter 12 A Graphical Game for Cooperative Neighbourhoods
of Selfishly Oriented Entities 251
Antoniou Josephina, Lesta Papadopoulou Vicky,
Libman Lavy and Pitsillides Andreas
Section 4 Game Theory in Transdisciplinary Contexts 269
Chapter 13 Geometrical Exploration of Quantum Games 271
David Schneider
Chapter 14 Physical Realization of a Quantum Game 293
A.M. Kowalski, A. Plastino and M. Casas
Chapter 15 Nash Equilibrium Strategies in Fuzzy Games 309
Alireza Chakeri, Nasser Sadati and Guy A. Dumont
Chapter 16 Game Theory as Psychological Investigation 325
Paul A. Wagner
Preface
The scientific discipline called game theory has now reached the age of 71, the age
which reminds ordinary human individuals of retirement. Fortunately enough,
profound scientific achievements do not lose their powers at the same speed as their
human creators. If they provide exciting new ideas and are able to stimulate a broader
scientific community, then they can become a public good, a precious intellectual
heritage, which is passed on from generation to generation of researchers. And even if
such theories are proven to be only special cases of a more general approach, or are
even falsified, their preliminary impasses or mistakes are usually acknowledged as
necessary steps towards state-of-the art knowledge. There is no need for a pension
system; such a theory lives on as an ingredient of ever expanding human knowledge.
When game theory entered the scientific arena in the 40s of the last century, it was a
highly acclaimed new star. A star launched by one of the most admired mathematical
geniuses of the century, John von Neumann. In contrast to these high aspirations, the
name of the new discipline - ‘Game Theory’ – at first sight suggested that it might be
not really a serious scientific project. It reminded of playing games, of card games like
poker, or board games like chess, or even of children not being able to understand
how to spend time in serious activities and thus having to train their abilities in
metaphorical game play. The tension between the most stern and most abstract
scientific discipline, mathematics, on the one hand, and on the other hand, the
reference to the homo ludens, the fun of exploring reality by acting in sheltered
simulated contexts, explains to some extent why game theory immediately was
attractive to many young scientists on both sides of the Atlantic. It also explains why
any attempt to change this name (some more ‘serious’ researchers have proposed to
call it Theory of Strategic Behavior) should be avoided. Game theory still thrives on its
ability to be sufficiently rigorous and open to a wide range of metaphorical game play
at the same time. This is why it is so charming.
Additional profile came from the science onto which its two creators, John von
Neumann and Oskar Morgenstern, decided to graft the new apparatus: economic
theory. After the Great Depression of the world economy in the 30s, few scientific
disciplines were visibly in a more disastrous state than economics. In tight cooperation
with the trained economist Morgenstern, the extremely ambitious John von Neumann
jumped on this subject to revolutionize it. But in doing so, the two underestimated the
X Preface
resistance against deep changes, which is an unavoidable characteristic of established
researchers trying to defend their own, with life-long great difficulties acquired,
intellectual capital. The relatively sudden dismissal of game theory as a scientific
fashion, immediately after John von Neumann’s death in the 50s, certainly has another
root in the long-run upswing of a reconstructing world economy, which seemed to
need no revolutionized economic theory. Some piece-meal social engineering based on
Keynes ideas, plus the mathematical framework of Paul Samuelson’s ‘Neoclassical
Synthesis’, seemed to be good enough to run the show. In economic theory, game
theory was out, and left to some mathematical ‘nerds’ who were mainly elaborating
refinements along the lines of John Nash’s equilibrium approach to game-theoretic
questions.
But ignorance of the economic mainstream could not kill the beast. The last three
decades saw a slowly starting, but exponentially rising influence of game theory in
surprisingly different fields of science. In its old domain, the social sciences (mainly
political economy), it is now hard to imagine that an innovative paper can succeed
without at least apologizing for why it doesn't use a more appropriate game-theoretic
approach. But in many other areas – from biology via abstract network theory to ICT
engineering – game-theoretic modeling has reappeared as an indispensable tool.
This is the very reason why this book is called ‘Game Theory Relaunched’. Which
parts of game theory are used, and which kind of further development is contributed
to game theory by the respective research, does, of course, assume different forms,
which in turn depends on the respective discipline. Game theory is still not a finalized
body of knowledge – and (as chapter 1 argues) will not be for a very long time to
come. Many existing textbooks on game theory therefore spend most of their pages on
describing the very specific history of refinements of Nash’s equilibrium concept – and
mention the actually happening renaissance of game-theoretic thought across different
disciplines and engineering activities as an exotic outlier at best. The collection in this
book takes a different perspective; it proceeds along the lines of currently developed
game-theoretic work. At the current stage of the renaissance of game theory, all that
can be done is to collect and to structure the diverse contributions: The book thus
consists of four parts containing (1) social science oriented chapters, (2) chapters
related to engineering problems, (3) chapters enhancing the mathematics of game
theory, and (4) chapters that stress the transdisciplinary character of game theory. By
working through this mosaic of building blocks of game theory, the reader can
hopefully get an impression of the breadth and depth of the intellectual potential,
which the founders of this theory had envisaged.
All the chapters have been written by different authors spread all over the globe, and
thus showing how international the game theoretic community already is these days.
It has been my honor to collect and edit their contributions, but the intellectual surplus
they produced is completely their own merit. Special thanks have to also go to InTech
Publisher, and in particular to publishing process manager Oliver Kurelic, whose
. book is called Game Theory Relaunched . Which
parts of game theory are used, and which kind of further development is contributed
to game theory by the. GAME THEORY
RELAUNCHED
Edited by Hardy Hanappi
Game Theory Relaunched
http://dx.doi.org/10.5772/2563
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