Corrections

Typos and Corrections for
Game Theory: An Introduction

First Print
Steve Tadelis
May 12, 2016
Abstract
This document contains corrections to typos, or changes to exercises
that are necessary to make them correct or manageable. If you find errors
in the book that are not listed here please notify me at [email protected]
and I will add the corrections and recognize your input.
Acknowledgments: I appreciate the time and effort made by the following
people who pointed out typos in the first draft of the book: Orie Shelef, Jingyi
Mao, Joseph Hall, and Jozsef Sakovics.
1. Page 38, exercise 2.10: In the first line “die in 6 months” should be
“die in 3 months”
2. Page 93, Remark: At the beginning of the 6-th line of the Remark the
number should be “55”instead of “45” (should read “(equal to 55)”
3. Page 95, exercise 5.3: Just before part a. add: “Assume that for each
player no two payoffs in the matrix are the same.”
4. Page 99, exercise 5.16: At the beginning of part (a) add: “Assume
that v is very large so that all the customers will be served by at least
one firm, and that some customer x∗ ∈ [0, 1] is indifferent between the two
firms.” For parts (c) and (d) add at the begining “Assume that v = 1.” For
part (d) change the variable’s assumed interval to be α ∈ [0, 12 ]. (instead
of α ∈ [0, 1])
5. Page 142, Remark: In the 11-th line, right after “Figure 7.10.”, please
insert the following text:
“Note, that the player has two pure strategies, “Exit” or “continue”.
Committing to the pure strategy of “Exit” implies that he exits at the
first intersection, and gets 0. If he chooses the pure strategy “continue”
then he goes all the way on the long route and gets a payoff of 1. Hence,
no mixed strategy will yield a payoff of 4 with positive probability. This,
however, is not true for a behavioral strategy, which we’ll call a “planning”
mixed strategy.”
6. Page 150, exercise 7.10: Delete this exercise.
7. Page 165: Delete footnote 3.

8. Page 169: The first order condition (which appears after the line “for
which the first-order condition is”) should be replaced with:
dv1 1 2 1 3 1 1 3
= − × × − × × =0,
dx1 x1 3 2 2(K − x1 ) 3 2 K − x1
and the next (and last on this page) mathematical expression should be
k
x1 (K) =
2
(instead of x1 (K) = 23 K as written in the text).
2
9. Page 170, exercise 8.2: Right after the statement “Consider the game
in Section 8.3.3.” add the following: “Now assume that the war-stage
game has the following payoffs: ” then add the following figure before
part a.:
10. Page 172, exercise 8.8 part (d): For this part to be interesting it
should be “How does your answer in (c) change for k = 725?” (Instead of
k = 225.)
11. Page 188, exercise 9.3: The payoffs from (P, p) in the second stage
game should be (6, 6) instead of (4, 4) so the matrix should be
Player 2
p n
P 6, 6 1, 0
P layer1
N 0, 1 2, 2
12. Page 188, exercise 9.4: For part (d) add the following at the beginning:
“For this part assume that if both firms choose open access, (O, o), then
the payoffs to each firm is 250 instead of 2500.”
13. Page 219, exercise 10.10: The end of this question should read “for
any discount factor 12 < δ < 1.”
14. Page 244, 12-th line form top: The line currently is “assumption,
but without it we will not be able even to discuss equilibrium behavior.”
Replace this with “assumption, but without it, it is more challenging to
explore equilibrium behavior.” Then, insert a footnote at the end of this
sentence that says “If the players do not share a common prior, that is,
they have different beliefs about the world, but these beliefs themselves
are common knowledge, then we can still use the tools developed here.”
3
15. Page 269, exercise 12.9: In part (b) there are two corrections: First,
“when player i is the only one to grab” should be replaced by “when player
i grabs”. Second, “ε < 1” should be replaced with “ε > 1”.
16. Page 321, Figure 16.1: The bottom row of numbers, the fourth entry
from the left is the number ‘6’, please replace it with the number ‘5’
17. Page 325: In the second equation from the top, c1 should be c2 so that
it reads:
max
2
v22 = (5 − q12 − q22 − c2 )q22 ,
q2
Then, 2 lines after this equation (at the beginning of the line) it writes
5−2q12 −q12 −c1 = 0. This is a typo and it should write: 5−2q22 −q12 −c2 = 0
18. Page 358: Delete footnote 1

19. Page 362, 8-th and 9-th lines below Figure 18.2: There are two
equations that need to be replaced. The first, in the 8-th lines, currently
is v2 (a2 , θ) = −(a2 − θ)2 . Instead, it should be v2 (a2 , θ) = −(θ − a2 )2 .
Similarly, in the 9-th line it writes v1 (a2 , θ) = −(a2 + b − θ)2 and instead
it shoud write v1 (a2 , θ) = −(θ + b − a2 )2 .
20. Page 362, equation at the bottom: The number 2 in front of a2 should
not be there so the penultimate entry should end with − 31 + a2 − a22
21. Page 363, proof: In the proof after Claim 18.5 there are three equation
lines. Their are two terms in each that need to be replaced. The correct
version of the three equations, in the order they appear, are as follows:
v1 (a2 (a01 ), θ) = −(θ + b − a2 (a01 ))2
v1 (a2 (a001 ), θ) = −(θ + b − a2 (a001 ))2
∆v1 (θ) = −(θ + b − a2 (a001 ))2 + (θ + b − a2 (a01 ))2
22. Page 363, Claim 18.6: The last term in the claim is a typo. Instead of
1−θ ∗ ∗
2 it should be 1+θ
2
23. Page 364, line before equation (18.1): The last term in the math
∗ ∗
expression is a typo. Instead of 1−θ
2 it should be 1+θ
2
24. Page 364, equation (18.1): The last term in the math expression is a
∗ ∗
typo. Instead of 1−θ
2 it should be 1+θ
2

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Typos and Corrections for

Game Theory: An Introduction

7. Page 165: Delete footnote 3.

18. Page 358: Delete footnote 1

v1 (a2 (a01 ), θ) = −(θ + b − a2 (a01 ))2

v1 (a2 (a001 ), θ) = −(θ + b − a2 (a001 ))2

∆v1 (θ) = −(θ + b − a2 (a001 ))2 + (θ + b − a2 (a01 ))2

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