Chapter Outline

Headline: Airline Seeks Government Regulation of Carry-on Baggage

1. Introduction
2. Overview of Games and Strategic Thinking
3. Simultaneous-Move, One-Shot Games
   1. Theory
   2. Applications of One-Shot Games
      1. Pricing Decisions
      2. Advertising and Quality Decisions
      3. Coordination Decisions
      4. Monitoring Employees
      5. Nash Bargaining
4. Infinitely Repeated Games
   1. Theory
      1. Review of Present Value
      2. Supporting Collusion with Trigger Strategies
   2. Factors Affecting Collusion in Pricing Games
      1. Number of Firms
      2. Firm Size
      3. History of the Market
      4. Punishment Mechanisms
   3. An Application of Infinitely Repeated Games to Product Quality
5. Finitely Repeated Games
   1. Games with an Uncertain Final Period
   2. Repeated Games with a Known Final Period: The End-of-Period Problem
   3. Applications of the End-of-Period Problem
      1. Resignations and Quits
      2. The "Snake-Oil" Salesman
6. Multistage Games
   1. Theory
   2. Applications of Multistage Games
      1. The Entry Game
      2. Innovation
      3. Sequential Bargaining
7. Answering the Headline
8. Summary
9. Key Terms and Concepts
10. Conceptual and Computational Questions
11. Problems and Applications
12. Selected Readings