This is a draft of the first half of an open access textbook on game theory. I hope to complete the entire book by the … end of 2015. After teaching game theory (at both the undergraduate and graduate level) at the University of California … theory and there is hardly any need for a new one. However, there are two distinguishing features of this textbook: (1) it is …

investigate the incentives to expend effort for a prize that produces consumption externalities and consider alternative … regulatory policies. We find relatively more global consumption externalities will increase (decrease) rent seeking when … consumption externalities are negative (positive). We show how introducing Pigouvian taxation (possibly with revenue transfer) and …

externalities. An organization is defined as a group of agents, together with a set of bilateral relations, formally, a connected … graph. Because of the presence of externalities, the profitability of coalitional threats to an organization depend on the … externalities, while the fully connected organization emerges under negative. This result is shown to hold independently of the …