Game theory deals with questions that are basic to all social sciences; it offers insight into any economic, political, or social situation that involves people with different goals or preferences. This book presents some of the most important models, solution concepts, and resutls of noncooperative and cooperative game theory, as well as the methodological principles that have guided the development of the fundamental models of game theory: games in extensive form and strategic form and Bayesian games with incomplete information. He defines Nash equilibria, sequential equilibria, and other equlibrium concepts and discusses their uses and limitations. He also covers incentive compatibility in games with communication, repeated games, two-person bargaining problems, cooperative solutions for coalitional games, and cooperation under uncertainty.